Tax rate by region Morocco

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

VAT Rates for SaaS in Morocco: A Comprehensive Overview

Morocco adopted the Value-Added Tax (VAT) system in 1986, aiming to generate revenue and support the country’s economic development. Under this system, the standard VAT rate for SaaS and other digital services stands at 20%. Businesses operating in Morocco are required to charge VAT on their SaaS sales, and the rate depends on the customer’s location. If the customer is a business registered in Morocco, the standard VAT rate of 20% applies. However, if the customer is a private individual or a business not registered in Morocco, the VAT rate is reduced to 10%.

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Morocco

Morocco adopted a VAT system in 1986 to enhance revenue generation and support economic development.

Official government link: Direction Générale des Impôts

20.00%

E-products and services VAT/Sales tax rate

10.00%

Reduced tax rate

Reduced tax rate product categories

Generally, there are no specific reduced tax rates for digital goods or services in Morocco

Exempted product categories

Generally, there are no specific exemptions for digital goods or services in Morocco

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

From the first sale 

Online registration possible

No

Local representative needed

Yes

Registration procedure

For a non-resident business to be recognized as a VAT payer in Morocco, it is required to fill out a VAT registration application form and physically submit it to the Moroccan Tax Administration office (MTA).

List of digital and electronic services liable for tax

E-books
Music downloads
Video games
Software
Apps
Streaming services (music, video)
Cloud computing
Web hosting
Software as a Service (SaaS)
Online advertising
Electronic marketplaces
Digital content creation and distribution

Penalties

In Morocco, the penalties for VAT-related issues are as follows:
– A late VAT registration incurs a penalty of MAD 1,000 (approximately EUR 92).
– If the VAT return is paid or filed late, the penalty ranges from 5% to 20% of the due VAT amount.
– Errors in VAT returns can lead to penalties ranging from 5% to 100% of the due VAT amount.
– Shortfalls are penalized at 100% of the due VAT amount.

Registration threshold

MAD 2 million 

Filing interval

Monthly

Filing deadline

By the 20th day of the month following the reporting period.

E-invoicing requirements

Not mandatory

Record keeping

The following records should be kept for at least 6 years:

Accounting records: These should accurately reflect your financial position and enable the preparation of financial statements.

Invoices: Both sales and purchase invoices should be retained.

Receipts: All receipts for expenses should be kept.

Bank statements: These should be retained to reconcile with your accounting records.

Payroll records: If applicable, these should be maintained.

How-To Guides: Morocco SaaS VAT

Step: 1 Threshold

Effective January 1, 2024, Morocco requires non-resident vendors of digital services to consumers (B2C) in Morocco to register for and collect VAT, regardless of the sales amount.

• B2C: No minimum threshold for non-residents; registration is mandatory from the first sale.
• B2B: Generally no registration required if only selling to VAT-registered businesses (Reverse Charge applies).
• Local Threshold: MAD 500,000 for resident companies.

Step: 2 Business Registration

Non-residents selling digital services (SaaS/E-products) to Moroccan individuals (B2C) must register via the Direction Générale des Impôts (DGI) electronic platform. Use of a Tax Representative is optional but recommended if the provider does not use the simplified digital portal.

Step: 3 TIN/VAT Number

An Identifiant Fiscal (IF), an 8-10 digit numeric code, is issued by the DGI. Once registered for VAT, this IF serves as the VAT ID.

Step: 1 Standard VAT Rate

The standard VAT rate in Morocco is 20%.

Step: 2 VAT Formula

To calculate your tax amount, use the following formula:

 

Tax Amount = Net Price x 20%

Step: 3 Reverse Charge (B2B)

It applies. For cross-border B2B digital services, the Moroccan business customer is responsible for self-assessing and remitting the VAT. The foreign seller does not charge VAT on the invoice.

Step: 1 Selling B2C

The non-resident supplier must charge the 20% VAT at the point of sale, collect it from the consumer, and remit it to the DGI.

Step: 2 Selling B2B

Do not charge VAT. The “Reverse Charge” mechanism applies. You must verify and record the customer’s Identifiant Fiscal (IF) and ICE (Common Company Identifier).

Step: 3 Invoice Requirements

Invoices or transaction records must include key details such as supplier identity, service description, and VAT amount.
• Supplier Name & Address
• Supplier VAT/IF Number
• Customer Name & Address
• Customer IF/ICE (for B2B)
• Date of Issue & Sequential Number
• Description of SaaS/Service
• Total Net Amount
• VAT Rate (20% or 0% for B2B)
• Total Amount (Incl. VAT)

Step: 1 Filing Interval

Taxes should be filed quarterly. 

 

Exception:

  • Annual turnover below MAD 1million in the prior year. This includes newly registered businesses
  • Non-resident VAT registered businesses

Step: 2 Filing Deadline

Taxes should be filed by the end of the month following the reporting period (e.g., January return is due by Feb 28/29) for electronic filings.

Step: 3 Submission

Taxes should be filed via the SIMPL-TVA portal (portail.tax.gov.ma). Payment can be made via bank transfer or direct debit.

Step: 4 Record Keeping

Records should be kept for a minimum of 10 years (per Finance Law 2024 digital service requirements).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Morocco’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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