Value-added tax
Moroccan VAT is indirect consumption tax collected by company on behalf of State. Normal rate 20%, with several reduced rates for essential goods and certain services.
Who is concerned
All companies with annual turnover exceeding 500,000 MAD (commercial) or 250,000 MAD (services). Below, auto-entrepreneur regime with flat rates.
Deadlines
Monthly declaration (if turnover > 1M MAD) before 20th of following month; quarterly otherwise before 20th of month following quarter. Electronic filing mandatory.
How it works
Company invoices VAT to clients (output VAT) and recovers VAT paid to suppliers (input VAT). Pays difference to State monthly or quarterly. If input VAT > output VAT, VAT credit carried forward or refundable.
2026 rates and scales
2026 rates: 20% (normal rate, majority of goods and services) · 14% (transport, butter, electricity, energy) · 10% (hospitality, restaurants, some banking operations) · 7% (water, pharmaceuticals, student rents) · 0% exports, international sales, some basic products (bread, milk, semolina).
Concrete example
Communication agency invoices 100,000 MAD excl. tax to client = 120,000 MAD incl. tax (output VAT 20,000 MAD). Pays 30,000 MAD excl. tax to suppliers = 36,000 incl. tax (input VAT 6,000 MAD). VAT to pay = 20,000 − 6,000 = 14,000 MAD.
Exemptions
Exempt operations without deduction right: agricultural, medical (consultations), education, insurance, banking operations on individuals. Exemptions with deduction right: exports, EU deliveries.
Declarative obligations
Issue compliant invoices (numbering, VAT mention, tax ID), keep VAT register, electronic filing SIMPL-TVA, keep invoices 10 years. Since 2024, e-invoicing mandatory for turnover > 5M MAD (progressive extension).
Penalties for non-compliance
15% surcharge late declaration, 20% incorrect declaration. 10% fine on undeclared VAT with 5%/year interest. False invoicing: 100% penalty + criminal prosecution.
Legal optimization tips
- Opt for cash accounting rather than accrual if many unpaid client invoices
- Recover VAT on all documented professional purchases (including utility vehicle fuel)
- Request VAT credit refund rather than carry-forward if export activity dominant
- Anticipate e-invoicing threshold to avoid administrative penalty
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