In this article
Paying your suppliers on time protects your cash flow and your reputation: a late payment exposes you to penalties, and a badly made payment can cost you the deduction of the expense and of the VAT. This guide summarizes the rules to know for paying and settling suppliers in Morocco, then shows how to track your supplier expenses without a spreadsheet.
Disclaimer: this article is an educational summary, not legal or tax advice. The texts change: check the current version of the Code of Commerce and the CGI, and have your situation validated by your chartered accountant.
In brief
| Topic | Key takeaway |
|---|---|
| Legal payment deadline | 60 days by default, 120 days maximum if the parties agree on it (law no. 69-21) |
| Late payment | A monetary fine payable to the Treasury, on the amount including VAT paid late, to be paid spontaneously with the declaration |
| Payment methods | Bank transfer, crossed non-endorsable cheque, bill of exchange, electronic payment: traceable and deductible |
| Cash | Deductibility limits: 5,000 DH/day and 50,000 DH/month per supplier (see our guide to cash payments) |
| Tracking | Due dates, partial payments, aged payables report |
1. Supplier settlement: the legal deadline and law 69-21
Law no. 69-21, published in the Official Bulletin in June 2023, amends the Code of Commerce to regulate payment deadlines between merchants (business-to-business relationships, known as "B2B"). Its fine applies in phases according to turnover: first to the largest companies (invoices issued from 1 July 2023), then to the others up to 1 January 2025 (DGI circular note no. 734). Its principles:
- If no deadline has been agreed, the supplier must be paid within 60 days.
- The parties may agree a longer deadline, but it cannot exceed 120 days (except for sector-specific deadlines set by decree).
- If the deadline is exceeded, a monetary fine applies to the amount including VAT paid late: the Bank Al-Maghrib key rate for the first month of delay, then an additional monthly supplement for each additional month or part of a month. It is paid to the Treasury, not to the supplier, spontaneously with the payment deadlines declaration.
- Companies above a certain turnover threshold must also declare their payment deadlines to the tax authority, at regular intervals, via the DGI's SIMPL portal.
Key point: put the agreed deadline in writing (purchase order, contract or terms of sale), and track the due dates. A verbal deadline protects no one.
The exact thresholds, rates and declaration schedules change: refer to the current text and to the DGI documentation, or ask your chartered accountant.
2. Supplier payment: accepted payment methods
The choice of payment method has a direct tax consequence. Traceable payments (bank transfer, crossed non-endorsable cheque, bill of exchange, electronic payment method) raise no deductibility issue.
Cash payment is regulated: beyond 5,000 DH per day and 50,000 DH per month to the same supplier, the expense and the VAT settled in cash are no longer deductible (articles 11-II and 106-II of the CGI). The details, the exceptions and the 6% fine targeting the seller for payments of 20,000 DH and above are covered in our article Cash payments in Morocco in 2026.
Good habit: pay by bank transfer and keep the proof (statement, transfer notice) together with the supplier's invoice. It is useful for your bookkeeping as much as for any tax audit.
3. Supplier expenses: what to record and track
To never pay late and never pay twice, for each purchase you need:
- The supplier invoice recorded (amount excluding VAT, VAT, amount including VAT, date).
- The payment due date, calculated from the agreed deadline.
- The payment status: to pay, partially paid, paid.
- Each payment: date, amount, payment method, reference.
- The supplier's bank details (bank and RIB), so you do not have to look them up for every transfer.
In a spreadsheet, this information quickly gets scattered. Management software links it together: a supplier's balance can be read at a glance, and upcoming due dates stand out on their own.
4. Supplier settlement in Billora
Billora brings purchase and payment tracking together in one place:
- Purchase orders: order from a supplier, with a payment deadline and a pre-filled due date. See the purchase order guide.
- Expenses: record the supplier's invoice (statuses to pay, partially paid, paid), with deductible VAT.
- Outgoing payments: each payment is linked to the relevant expense. Partial payments are supported and the remaining balance due is calculated for you.
- Supplier record: contact details, bank and RIB, history of expenses and purchase orders.
- Aged payables report: debts sorted by age (not yet due, 1-30 days, 31-60 days, 61-90 days, over 90 days), to spot late payments before they cost you penalties.
- Cash rules: Billora flags cash payments that approach or exceed the limits, so you do not lose a deduction.
To go further on balancing money coming in and going out, also read our guide to cash flow management for small businesses and SMEs.
Frequently asked questions
What is the payment deadline for a supplier in Morocco?
If no deadline has been agreed, 60 days; the parties may agree on a longer deadline, up to a limit of 120 days (law no. 69-21, business-to-business relationships).
What do you risk by paying a supplier late?
A monetary fine payable to the Treasury, calculated on the amount including VAT paid late; the companies concerned pay it themselves with their declaration. The exact rate and the declaration rules are explained in our article on payment deadlines and law 69-21: check your situation with your chartered accountant.
Can you pay a supplier in cash?
Yes, but with limits: beyond 5,000 DH per day and 50,000 DH per month to the same supplier, the expense and the VAT are no longer deductible. Prefer a bank transfer or a crossed non-endorsable cheque.
How do you track supplier debts?
Record each invoice with its due date, link each payment to it, and consult the suppliers' aged payables report to see what is owed, to whom and for how long.
Is paying a supplier different from a customer payment?
It is the same principle seen from the other side: an outgoing payment (disbursement) linked to an expense, whereas an incoming payment (receipt) is linked to a customer invoice.