VAT margin scheme for second-hand goods

In Morocco, the margin scheme under Article 125 bis of the General Tax Code applies to specified resales of second-hand movable goods. It may be used, for example, where the goods were acquired from a private individual, a non-taxable person, a taxable person carrying on an exempt activity without deduction rights, or another dealer applying the margin scheme.

VAT is calculated on the positive difference between the selling price and the purchase price rather than on the full selling price. This difference is treated as VAT-inclusive. VAT relating to goods sold under the margin scheme is not deductible.

VAT must not be shown separately on the invoice. The invoice must state that the transaction is taxed under the margin scheme and refer to the applicable legal provisions.

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