VAT credit in Morocco in 2026: how do you get a refund from the State?

A VAT credit arises when, over a reporting period (monthly, or quarterly for new taxpayers and businesses with taxable turnover below 1,000,000 MAD, Article 108 of the CGI), the recoverable VAT on purchases and investments is greater than the output VAT. The balance can be carried forward to subsequent periods or, in the cases provided for by law, refunded. VAT liability, its thresholds (2,000,000 MAD for retailers, 500,000 MAD for small manufacturers and service providers) and the frequency of returns are presented in our guide on VAT registration and returns in Morocco.

The right of deduction (Article 101 of the CGI) arises at the end of the month in which the supplier invoice or the customs receipt is paid, and must be exercised within one year from the month or quarter in which it arose, failing which the VAT is lost.

Article 103 of the CGI sets out the principle: the VAT credit can be neither offset against another tax nor refunded, except in the following cases:

• Exports of goods and services and other transactions that are exempt or under suspension with right of deduction (Articles 92 and 94 of the CGI); the refund is capped at the VAT notionally calculated on the turnover achieved under exemption or suspension
• Acquisition of capital goods that can be recorded as fixed assets (Articles 103 and 103 bis of the CGI)
• Taxable cessation of business
• Credit resulting from VAT withholding at source (Article 117 of the CGI), made refundable by the 2024 Finance Law
• Certain sector-specific cases (leasing, seawater desalination)

Outside these cases, in particular for the "structural" credit of a business that buys at 20% and sells at 10% or 7%, the credit can only be carried forward.

Article 106 of the CGI lists the exclusions from the right of deduction. The following are excluded in particular:

• Goods and services not used for the business (personal expenses, premises unrelated to the activity)
• Passenger transport vehicles, unless they are the business's working tool (car rental, driving schools, public transport)
• Certain petroleum products not used as fuels or raw materials
• Purchases paid in cash above the ceilings set by the CGI

Deduction also requires a proper invoice bearing the particulars of Article 145 of the CGI (in particular the supplier's IF, ICE and professional tax (taxe professionnelle) number, the customer's ICE, the amount and rate of VAT); failing this, it may be rejected during a tax audit.

The exporter's credit stems from exemptions with right of deduction, presented in our guide on VAT exemptions in Morocco; for a service provider, the overall tax and foreign exchange regime is described in our guide on exporting services from Morocco.

A new company can avoid pre-financing the VAT on its equipment: capital goods acquired during its first 36 months of activity can be purchased exempt from VAT (Article 92 of the CGI).

1. Recording of the credit in the VAT returns filed online on the DGI's SIMPL portal
2. Quarterly refund application, on the DGI form, at the latest within the year following the quarter concerned, failing which it is time-barred
3. Supporting documents: list of purchase invoices, customs receipts and, for exporters, a statement of exempt turnover; a simplified procedure exists when the application is supported by a certificate from the statutory auditor (commissaire aux comptes) or a chartered accountant (expert-comptable) (see when to use a chartered accountant in Morocco)
4. Review by the tax services (documentary check, or even an on-site audit)
5. Decision: refund, reasoned rejection or request for additional documents
6. Appeal: complaint to the administration, then the administrative court

The announced review period is around three months after a complete file is filed; in practice it is often longer.

• Supplier invoices bearing the mandatory particulars (Article 145 of the CGI: IF, ICE, professional tax number, description, price excluding VAT, VAT rate and amount, price including VAT)
• Proof of payment (bank statements, cheques, transfers), since the right of deduction arises on payment
• VAT returns filed on SIMPL
• Customs declarations and receipts for imports and exports
• Withholding at source certificates provided by your customers, where applicable

Article 211 of the CGI and Law 9-88 require accounting and tax documents to be kept for 10 years (see the accounting obligations of companies in Morocco).

In the absence of a refund, the VAT credit is carried forward and offset against the VAT payable for subsequent periods, until it is used up, with no time limit. It cannot be offset against another tax (IS, IR, professional tax).

The chargeable event (fait générateur) for output VAT is receipt of payment (encaissement) by default, or invoicing for businesses that opt for the accrual regime (régime des débits) (Article 95 of the CGI). Whatever the regime, the right of deduction only arises on actual payment of supplier invoices (Article 101 of the CGI). The regime therefore does not affect the nature of the credit, but the timing of when it arises.

To be able to claim a VAT credit, here is what you need from the outset: a properly registered company (IF, ICE, professional tax), the right VAT regime and invoicing compliant with Article 145. With Charikaty, you do everything online. Charikaty is a private Moroccan legal-tech platform: we set up your company 100% online and put in place these first tax obligations. More than 250 companies have already been set up with Charikaty. For your VAT credit refund applications and the preparation of the supporting documents required by the DGI, our accounting service refers you to partner chartered accountants registered with the OEC (Law 15-89).