Moroccan VAT rates and VAT compliance

The current VAT rates in Morocco are:

Morocco VAT rates

VAT Rate Supplies
20% standard All supplies of goods, services and imports not entitled to reduced or full exemptions.
14% reduced Domestic transportation (excluding train)
10% reduced Banking; hotel and restaurant (excluding alcohol); oil and other petroleum products
7% reduced Public supplies of water and electricity; medicines and pharmaceuticals
0% Exemption with credit - Exports of goods and services; agriculture supplies;

Exempt

Exempt without credit – basic foodstuffs; newspapers and books

Morocco VAT Compliance

Tax Point

The tax point, or time of supply, is the date when Moroccan VAT becomes due. This is at the point of payment in most situations, including payments in advance. The vendor may apply to the Ministry of Finance to have the date of invoice issuance used as the tax point instead. If the consideration is settled ahead of this, then the date of cash payment overrules this rule.

For imports, the tax point is when the goods are to be cleared through customs.

VAT Invoices

Invoices must be issued for all transactions, and should include the following details:

  • Vendor’s details, including VAT number and corporate identification
  • Date
  • Unique VAT number
  • Customer details
  • Description of goods (including quantities etc) or services
  • Net and gross price
  • VAT charge, including rate applied
  • Foreign currency calculations must show local currency and conversation rate applied to dirhams