In this article
VAT (Value Added Tax) is one of the most important taxes for Moroccan businesses. If it is filed incorrectly, it can lead to significant penalties. This guide explains everything: who is affected, how to calculate your net VAT, and how to complete your return.
1. Who is subject to VAT in Morocco?
The following are required to be subject to VAT in Morocco:
- Legal entities (SARL, SA…) whose annual turnover exceeds 500,000 MAD
- Individuals (traders, craftspeople, self-employed professionals) whose turnover exceeds the same threshold
- Certain activities are subject to VAT from the very first dirham, regardless of turnover (importers, manufacturers…)
Below this threshold, being subject to VAT is optional but can be advantageous if you work with VAT-registered businesses (they recover the VAT you charge).
2. The two VAT regimes
Debit regime (on invoicing)
You declare VAT as soon as the invoice is issued, whether or not you have been paid. This is the most common regime. Advantage: accounting simplicity. Drawback: you may pay the VAT before you have collected the money.
Cash-basis regime (on receipts)
You declare VAT only when you receive payment. Advantage: better cash flow, especially if you have customers who pay late. Drawback: tracking receipts is more complex.
Your regime is chosen when you file your declaration of existence and can be changed at the start of a financial year.
3. Filing frequency
| Annual turnover excl. VAT | Frequency | Filing deadline |
|---|---|---|
| ≥ 1,000,000 MAD | Monthly | Before the 20th of the following month |
| < 1,000,000 MAD | Quarterly | Before the 20th of the month following the quarter |
In practice: if you file monthly, January's VAT must be filed and paid before 20 February.
4. How to calculate your net VAT payable
The formula is simple:
Net VAT = VAT collected − deductible VAT
VAT collected
This is the VAT you charged your customers during the period. Example: if you issued invoices for 100,000 MAD excl. VAT at 20%, your VAT collected is 20,000 MAD.
Deductible VAT
This is the VAT you paid to your suppliers during the same period, and which you can deduct. It relates to:
- Purchases of goods for resale
- Overheads (business rent, professional phone, equipment…)
- Investments (equipment, utility vehicles…)
Condition: the purchase invoice must be compliant (supplier's ICE, VAT rate shown) for the VAT to be deductible.
VAT credit
If your deductible VAT exceeds your VAT collected, you have a VAT credit that you can carry forward to the next period, or request a refund (subject to conditions).
5. How to file the return
Since 2017, VAT filing and payment must be done online via:
- The simba.tax.gov.ma portal (Integrated Management and Budget by Activity System)
- Your chartered accountant, if you delegate tax management to them
The forms to complete are:
- Form no. 3310: monthly or quarterly VAT return
- Statement detailing transactions if the amount exceeds a certain threshold
6. Penalties for late filing
Meeting deadlines is crucial. In case of delay:
- 15% surcharge on the VAT due for late filing
- Late-payment interest of 5% per month for late payment (capped at 15%)
- In case of assessment by the tax authority (taxation d'office): a surcharge of up to 25 to 100%
Generate your VAT report automatically with Billora
Billora automatically calculates your VAT collected and deductible VAT from your invoices and expenses. The VAT report is available in one click, broken down by rate, by regime (debit/cash-basis), and by filing period.
- Summary of VAT collected by rate (20%, 14%, 10%, 7%)
- Deductible VAT on purchases and expenses
- Net balance payable or carry-forward credit
- PDF export ready to send to your accountant