VAT (TVA) and invoicing in Morocco (2026): rates and rules

VAT in Morocco is the taxe sur la valeur ajoutée (TVA), administered by the Direction Générale des Impôts (DGI, المديرية العامة للضرائب) under the Code Général des Impôts (CGI). Between 2024 and 2026 Morocco reorganised its VAT rates into a simpler 20%, 10% and 0% structure, and the DGI is preparing nationwide e-invoicing. This guide covers the 2026 rates, who is liable, returns, invoices, withholding, penalties and a worked example in dirhams. Rules are as of October 2026.

VAT in Morocco at a glance

The 2024 Finance Law provided for a gradual move, between 2024 and 2026, to three rates: 0%, 10% and 20%.

The 2026 Finance Law added exemptions for agricultural fertilisers and growing media (with the right to deduct) and for dry pasta (without it).

Who is liable to VAT

• No general threshold: a business that makes taxable supplies in Morocco is liable to VAT from the start. VAT registration is part of your tax registration, and you receive an identification number for VAT.
• Voluntary option: exporters with no taxable sales in Morocco can register in order to recover the VAT on their purchases.
• Non-resident businesses making taxable supplies in Morocco also register, usually through a tax representative, unless the Moroccan customer accounts for the VAT.
• Some activities and small operators have special rules or exemptions under the CGI, so check your own position with the DGI or your accountant before you invoice without VAT.

When VAT is due

The default rule in Morocco is the cash basis (régime de l'encaissement): VAT becomes due when you receive payment, including advance payments. You can opt to account for VAT on the invoice date instead (régime des débits). If you are paid before you invoice, VAT is due on the payment.

VAT returns and payment

• Monthly returns are the rule.
• Quarterly returns apply to businesses whose turnover in the previous year was under MAD 1 million, to new businesses, and to registered non-residents.
• Returns are filed and the VAT is paid online with the DGI, in the month following the period; check the exact day in the DGI's tax calendar, which publishes every due date.

Late payment and late filing penalties

• Late payment: a penalty of 5% if you pay within 30 days of the deadline and 10% after that, plus late-payment interest of 5% for the first month and 0.5% for each further month.
• Late filing: penalties of 5%, 15% or 20% depending on the delay, or whether the DGI has to assess the tax itself.

Invoices: what they must show

The CGI requires an invoice for every taxable transaction. Your invoice should show:

1. 1Your name or company name, address, tax identification number (identifiant fiscal) and ICE (Identifiant Commun de l'Entreprise), the common business identifier used on official documents
2. 2The invoice date and a unique, sequential invoice number
3. 3The customer's name and address, and for a business customer its identifiers, including its ICE
4. 4A description of the goods (with quantities) or of the services
5. 5The price excluding VAT and including VAT
6. 6The VAT rate applied and the VAT amount
7. 7For an invoice in a foreign currency, the amount in dirhams and the exchange rate used

Other points:

• Corrections: correct or cancel an invoice with a credit note (facture d'avoir) that refers to the original invoice, rather than editing or deleting it.
• VAT withholding: in some cases your customer withholds part of the VAT on your invoice and pays it to the DGI. For listed services the withholding is generally 75% of the VAT, and up to 100% if you cannot show a certificate of tax compliance (attestation de régularité fiscale) issued in the last six months; suppliers of equipment have VAT withheld when they cannot show that certificate. Keep your certificate up to date.
• Records: the DGI can reassess tax until the end of the fourth year after the year concerned, and that period can be extended where there are losses or VAT credits. Keep your invoices, books and supporting documents at least that long.

E-invoicing: where Morocco stands

The legal basis for electronic invoicing has been in the CGI since the 2018 Finance Law. The DGI ran a public consultation and awarded the development of its platform in October 2024, and it is preparing a centralised model:

• invoices go through a DGI platform, which passes them to the customer, and the life of the invoice up to payment is reported;
• the first phase covers B2B invoices, then the scope widens by type and size of business, with sales to consumers later;
• the format announced is UBL, and later phases may rely on certified service providers.

The official launch was planned for 2026, but the exact date depends on an implementing decree. As of the latest updates we could verify (April 2026), that decree had not been published, so no binding start date has been set. Clientlly is not connected to the DGI's e-invoicing platform; when e-invoicing becomes mandatory for you, the electronic exchange will have to go through the DGI's platform or a provider certified for it.

Worked example in dirhams

A small consultancy in Casablanca files its monthly return:

• Sales: MAD 50,000 of services before VAT. Output VAT at 20%: 50,000 × 0.20 = MAD 10,000. Clients pay MAD 60,000.
• Purchases: a computer for MAD 20,000 plus MAD 4,000 VAT (20%), and water and sanitation for the office for MAD 5,000 plus MAD 500 VAT (10%). Input VAT: MAD 4,500.
• VAT due: 10,000 − 4,500 = MAD 5,500, assuming all the sales have been paid in the month (cash basis).

To find the VAT inside a price: MAD 1,200 × 20 ÷ 120 = MAD 200 at 20%, and MAD 1,100 × 10 ÷ 110 = MAD 100 at 10%.

Common mistakes

1. 1Using the old 7% or 14% rates. The reform has moved items to 10% or 20% (or to 0% with the right to deduct) by 2026.
2. 2Declaring VAT on invoices you have not been paid for, or the opposite, without knowing which regime you are under.
3. 3Leaving the ICE off an invoice, yours or your business customer's.
4. 4Letting the certificate of tax compliance expire, so that customers withhold up to all of the VAT on your invoices.
5. 5Filing quarterly after passing MAD 1 million of turnover.
6. 6Paying a few days late. The 5% penalty applies from the first day, with interest on top.

How Clientlly helps

Clientlly numbers your invoices sequentially in each series, applies Morocco's VAT rates on every invoice and links credit notes to the original invoice. It keeps sales and purchase VAT books per rate, including exports and reverse charge, reads the VAT from scanned purchase receipts, and prepares tax reports for you and your accountant with Excel and PDF exports. You can issue invoices in multiple currencies, send the PDF in your client's language, add a card payment link, and let automatic reminders go out 3, 14 and 30 days after the due date. See the invoicing module and pricing.

Clientlly does not file your return with the DGI and is not connected to the DGI's future e-invoicing platform.