How do you handle VAT registration and VAT returns in Morocco in 2026?
In Morocco, any company that carries out taxable transactions is liable to VAT from the first dirham, subject to limited exceptions, and its registration results from the declaration of existence filed with the DGI within 30 days of incorporation (Article 148 of the General Tax Code [Code Général des Impôts, CGI]), which assigns the tax identifier (identifiant fiscal, IF) and the ICE. The VAT return is then monthly if taxable turnover for the previous year reaches 1,000,000 MAD, quarterly otherwise and for new taxpayers, and is filed online on SIMPL-TVA before the end of the month following the period. With Charikaty, the company is set up online and these first tax obligations are put in place from registration.
The essentials in 7 points
In shortLegal framework: Articles 87 to 125 of the CGI 2026 (VAT)
Scope: goods, services and imports in Morocco (Article 89); liability from the first dirham, except retailers below 2,000,000 MAD of turnover (Article 89-I-2°) and small manufacturers or service providers up to 500,000 MAD (Article 91-II-1°)
2026 rates: 20% (standard), 10% and 7% (reduced); the 14% rate disappeared with the 2024-2026 convergence under the 2024 Finance Law
Exemptions: Article 91 (without right of deduction) and Article 92 (with right of deduction, including exports)
Filing regime: monthly if taxable turnover for the previous year ≥ 1,000,000 MAD; quarterly otherwise and for new taxpayers (Article 108)
Filing and payment: online on SIMPL-TVA, before the end of the month following the period, monthly or quarterly (Articles 110 and 111)
Retention: documents kept for 10 years (Article 211)
the information provided in this article is for information purposes only and does not constitute personalized legal advice. We recommend that you consult a qualified chartered accountant (expert-comptable) before making any decision. Charikaty provides experts to support you: contact us for free advice.
Who is liable to VAT in Morocco?
How the tax works
VAT is an indirect tax on consumption. It works through three flows:
- Output VAT (TVA collectée): invoiced to customers on sales
- Input VAT (TVA déductible): borne on purchases and investments (Article 101 of the CGI)
- VAT due: difference between output VAT and input VAT; if negative, it constitutes a VAT credit that can be carried forward or, in certain cases, refunded (Article 103)
Taxable persons and transactions
The following are compulsorily subject to VAT, within the meaning of Article 89 of the CGI:
- Supplies of goods made for consideration by manufacturers, importers, wholesalers and certain retailers
- Services provided for consideration
- Import transactions
- Construction works (travaux immobiliers) and the other transactions referred to by law
For a service company, a manufacturer, an importer or a wholesaler, no threshold applies: VAT is due from the first dirham. There are two exceptions. Retailers are only liable if their turnover for the previous year reaches 2,000,000 MAD (Article 89-I-2°), and small manufacturers and small service providers, whose activity is mainly manual, are exempt up to 500,000 MAD of annual turnover (Article 91-II-1°).
Which VAT rates apply in 2026?
Rates applicable in 2026
The 2024 Finance Law (Law No. 55-23) gradually abolished the 14% rate; in 2026, electricity is taxed at 20%.
| Rate | Cases of application in 2026 | CGI reference |
|---|---|---|
| 20% | Standard rate, applicable to any transaction that is neither subject to a reduced rate nor exempt | Article 98 |
| 10% | Restaurant services, hotels, road transport, banking transactions, water, refined sugar, certain food products | Article 99 |
| 7% | Non-exempt medicines, certain basic products | Article 99 |
| Exemption with right of deduction | Exports, international transport, capital goods during the first 36 months (subject to conditions), i.e. the equivalent of a "zero rate" | Article 92 |
Exemptions
Certain transactions are exempt without right of deduction (Article 91 of the CGI: bread, milk, certain medical and educational services, small manufacturers and small service providers up to 500,000 MAD) or with right of deduction (Article 92: exports, international transport, capital goods during the first 36 months). The list and their effects are detailed in our guide on VAT exemptions in Morocco.
How do you register for VAT?
Declaration of existence with the DGI
There is no separate "VAT number" in Morocco. Liability results from the declaration of existence (déclaration d'existence) filed with the DGI within 30 days of incorporation (Article 148 of the CGI), as part of the company's registration:
- Registration in the Commercial Register with the commercial court registry (greffe du tribunal de commerce) (Law 15-95)
- Assignment by the DGI of the tax identifier (IF), which is also used for VAT, and of the professional tax (taxe professionnelle, TP) number (see the tax identifier of a new company)
- Assignment of the 15-digit ICE (Decree No. 2-11-63 of 2011), detailed in our guide on the Common Company Identifier (ICE)
- Opening of a SIMPL account for online filing and online payment
The declaration of existence states any option for the accrual basis (régime des débits) (Article 95); failing this, the company falls under the cash basis (régime de l'encaissement). With Charikaty, these formalities are completed online during formation, without travelling.
Identifier and invoicing
The company shows its IF and its ICE on its invoices, which contain the mandatory particulars of Article 145 of the CGI:
- Identity of the seller (company name, address, IF, professional tax number, ICE, RC number)
- Identity of the customer (name or company name, address, ICE if the customer is a business)
- Invoice number and date, description of the goods or services, unit price, quantity
- VAT rate and amount, amounts excluding tax (HT) and including tax (TTC), method of payment
Should you file VAT monthly or quarterly?
Monthly regime
The following are compulsorily subject to the monthly regime (Article 108-I):
- Taxpayers whose taxable turnover for the previous year reaches or exceeds 1,000,000 MAD
- Persons who have no establishment in Morocco and carry out taxable transactions there
Quarterly regime
The following fall under the quarterly regime (Article 108-II):
- Taxpayers whose taxable turnover for the previous year is below 1,000,000 MAD
- Taxpayers carrying on a seasonal, periodic or occasional activity
- New taxpayers, for the current calendar year
A new company therefore files quarterly in its first year; thereafter, its regime depends on the taxable turnover achieved. The option for the monthly regime must be requested before 31 January.
Filing and payment deadline
For online filing, which is mandatory for all businesses (Article 155), Articles 110 and 111 of the CGI set filing and payment before the end of the month following the period (month or quarter).
| Regime | Period | Legal deadline (online filing) |
|---|---|---|
| Monthly | Calendar month | Before the end of the following month |
| Quarterly | Calendar quarter | Before the end of the month following the quarter (end of April, July, October and January) |
How do you file and pay VAT on SIMPL-TVA?
The DGI's SIMPL-TVA service
Returns and payments are made electronically via the SIMPL-TVA service of the DGI portal (simpl.tax.gov.ma). Online filing (Article 155) and online payment (Article 169) are mandatory.
Content of the return
The monthly or quarterly return shows:
- Turnover excluding tax by applicable rate and the exempt transactions
- Output VAT by rate
- Input VAT on purchases and fixed assets (Article 101), with the statement of deductions (relevé des déductions) by supplier invoice (Article 112)
- The deduction pro rata where applicable (Article 104)
- The balance: VAT payable or VAT credit to be carried forward
VAT withholding at source since 1 July 2024
Since 1 July 2024 (2024 Finance Law), the business customer (State, public establishments, companies taxed under the actual or simplified net income regime) withholds 75% of the VAT invoiced on certain services if the service provider presents a tax compliance certificate (attestation de régularité fiscale) less than six months old, and 100% otherwise; the service provider offsets the amount withheld in its return. The 2026 Finance Law extended this mechanism to services provided to banks, insurance companies and large companies.
VAT credit
If input VAT exceeds output VAT, the balance of the return forms a VAT credit, carried forward to subsequent returns. A refund is only possible in the cases set out in Article 103 of the CGI, presented in our guide on the VAT credit and its refund.
Which records must be kept for VAT?
Keeping records
The taxable person keeps proper accounts (Law 9-88, see the accounting obligations of companies in Morocco) supporting each return:
- A sales journal detailing transactions by rate
- A purchases journal summarizing input VAT, invoice by invoice
- The statement of deductions attached to each return (Article 112)
What penalties apply for failing to meet VAT obligations?
Failure to comply with VAT obligations exposes the company to:
- Surcharge for late filing (Article 184 of the CGI): 5% if filing takes place within 30 days of the due date, 15% beyond that, 20% in the event of an ex officio assessment (imposition d'office)
- Late payment penalty and surcharges (Article 208): penalty of 10% (5% if payment is made within 30 days), surcharge of 5% for the first month then 0.5% per additional month or part of a month
- Fine of 1,000 MAD for failure to file the declaration of existence (Article 188)
- Disallowance of the deduction of VAT shown on invoices lacking the particulars required by Article 145 (Article 106)
How does Charikaty simplify VAT compliance?
To start out compliant with VAT, here is what you need: a declaration of existence to the DGI, an IF, an ICE, a professional tax number, the right VAT regime and invoicing compliant with Article 145 of the CGI. With Charikaty, you do everything online. Charikaty is a private Moroccan legal-tech firm for 100% online company formation: we set up your company (SARL, SARL AU, SAS, SA) remotely and put these first tax obligations in place, without travelling. More than 250 companies have already been set up with Charikaty. For your SIMPL-TVA returns, our chartered accountant partners then take over with our accounting service.
FAQ: VAT in Morocco
Is there a minimum threshold for VAT liability?
For a service company, a manufacturer, an importer or a wholesaler, there is no threshold: VAT is due from the first dirham. Retailers are liable from 2,000,000 MAD of turnover (Article 89-I-2°) and small manufacturers and small service providers are exempt up to 500,000 MAD (Article 91-II-1°).
Do you need to apply for a VAT number in Morocco?
No, there is no separate VAT number in Morocco. VAT registration results from the declaration of existence filed with the DGI within 30 days of incorporation (Article 148 of the CGI), and the tax identifier (IF) assigned is also used for VAT.
What are the VAT rates in Morocco in 2026?
The VAT rates in 2026 are 20% (standard rate), 10% and 7% (reduced rates). The 14% rate disappeared with the convergence provided for by the 2024 Finance Law; exports are exempt with right of deduction (Article 92).
When am I subject to the monthly or quarterly regime?
The VAT return is monthly if taxable turnover for the previous year reaches 1,000,000 MAD, and quarterly below this threshold as well as during the first calendar year of a new company (Article 108 of the CGI).
When and how do I file my VAT return?
The VAT return is filed before the end of the month following the period concerned (month or quarter), only online by online filing and online payment on SIMPL-TVA (Articles 110 and 111 of the CGI). For a quarterly filer, the deadlines fall before the end of April, the end of July, the end of October and the end of January.
What must appear on an invoice?
An invoice must contain the particulars required by Article 145 of the CGI: identity of the parties, the seller's IF, professional tax number and ICE, the business customer's ICE, number and date, description, VAT rate and amount, amounts excluding tax (HT) and including tax (TTC), method of payment.
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