Morocco VAT Guide 2026

Overview — VAT System in Morocco (TVA)

Morocco's TVA was introduced in 1986 and is governed by the Code Général des Impôts (CGI). The Direction Générale des Impôts (DGI) administers the tax. The standard rate of 20% applies to most goods and services, with reduced rates for essential goods, certain services, and strategic sectors. VAT returns (Déclaration de TVA) are filed monthly or quarterly depending on the taxpayer's annual turnover. The TVA system is a credit-invoice VAT with input tax recovery rights.

Standard Rate — 20%

The standard Moroccan VAT rate is 20%, which applies to most goods and services not covered by reduced rates or exemptions. This rate is applied to the taxable base (ex-TVA price) for most B2B and B2C transactions. VAT-inclusive pricing is standard for B2C transactions. The standard rate generates the majority of TVA revenue for the Moroccan state budget.

Reduced Rates — 14%, 10%, and 7%

Morocco employs multiple reduced VAT rates:

14% rate applies to:

• Banking and financial services (commissions, fees)
• Insurance brokerage services
• Certain entertainment and leisure activities

10% rate applies to:

• Hotel and accommodation services
• Restaurant and catering services
• Transport services (passenger transport, freight)
• Electricity and water supply (for household consumption)
• Construction materials (cement, steel, tiles)
• Fertilisers and agricultural inputs

7% rate applies to:

• Basic foodstuffs (sugar, oil, milk, butter, tea, coffee, flour, bread)
• Medicines and pharmaceutical products
• Books, newspapers, and magazines
• Medical equipment for disabled persons
• Agricultural equipment and machinery

Exempt Supplies

The following supplies are exempt from TVA (no VAT charged, input VAT recovery not available):

• Exports of goods and services (zero-rated — input VAT can be recovered)
• Educational services (public and private schools, universities)
• Medical and healthcare services (hospitals, clinics)
• Insurance transactions (premiums, claims)
• Sale of residential property (certain conditions)
• Financial services (loans, deposits, currency exchange)
• Postal services
• Rental of residential property

VAT Registration Threshold

Businesses with annual turnover exceeding MAD 500,000 (approximately €46,000) for the supply of goods, or MAD 200,000 for service providers, must register for TVA. Registration is made with the local tax office (Service des Impôts). Voluntary registration is permitted for businesses below the threshold, allowing input VAT recovery. Foreign businesses providing taxable services in Morocco must register regardless of turnover.

Electronic Invoicing Roadmap

Morocco is progressively implementing a mandatory e-invoicing system. As of 2026, certain large taxpayers (Grandes Entreprises) are required to issue electronic invoices (factures électroniques) in a standardised XML format. The system will be gradually extended to all taxable persons by 2028. E-invoicing aims to improve VAT compliance, reduce fraud, and enable real-time data sharing with the DGI. Currently, paper invoices remain acceptable for most businesses, but electronic archiving is mandatory for all VAT invoices.

VAT Filing and Refunds

VAT returns are filed based on turnover:

• Monthly: Taxpayers with turnover exceeding MAD 10 million
• Quarterly: Taxpayers with turnover below MAD 10 million

Returns are due by the 20th of the month following the period. VAT credits (input VAT exceeding output VAT) can be carried forward or refunded. Refunds are processed within 3–12 months, with priority given to exporters and businesses in a VAT credit position for more than 6 months.

FAQs

What is the VAT treatment for imports?

Imports of goods into Morocco are subject to TVA at the applicable rate (standard 20% or reduced rates), calculated on the customs value plus customs duties. VAT is collected by Customs (ADII) at the point of entry.

Can foreign companies recover Moroccan VAT?

Foreign companies not established in Morocco may apply for a VAT refund through the "VAT refund for non-residents" procedure, subject to reciprocity. This is most commonly used by businesses attending trade fairs or providing services in Morocco temporarily.

Are there any special VAT regimes for SMEs?

Yes, the Régime du Bénéfice Net Réel Simplifié allows simplified VAT filing for small businesses. Additionally, businesses below the registration threshold are not required to charge VAT, simplifying their compliance burden.

Disclaimer

This guide provides general information about Moroccan VAT (TVA) for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Moroccan tax advisor (conseil fiscal) or the DGI directly for advice specific to your situation. InvestmentKit does not provide tax advice.