VAT Calculator Morocco

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Morocco
standard rate	20% Most taxable goods and services that are not expressly subject to the 10% rate or exempt. From 1 January 2026, the 20% rate applies in particular to electricity other than electricity generated from renewable sources, electricity meter rental, and passenger and freight transport other than qualifying urban and road transport subject to 10%.
reduced rate	10% Includes accommodation, restaurant and café services, certain lettings of tourist establishments, electricity generated from renewable sources, urban transport and road passenger and freight transport, specified services supplied by insurance canvassers and brokers, qualifying economy cars and inputs used in their manufacture, water supplied to public distribution networks for non-domestic use together with certain sewerage services and water meter rental, refined sugar, milled rice, specified pasta products and photovoltaic panels.
exempt with deduction	VAT exemptions with deduction rights include exports of goods and services, goods placed under specified customs suspension regimes, certain equipment intended exclusively for agricultural use, pharmaceutical products and, from 1 January 2026, fertilisers and growing media intended exclusively for agricultural use and human or animal blood and its derivatives. Exemption with deduction generally allows related input VAT to be recovered. It is not a separate statutory 0% rate.
exempt without deduction	Subject to the conditions of the Moroccan Tax Code, exemptions without input VAT deduction include certain basic food products, including bread and specified cereal products, milk, powdered milk and butter derived from animal milk, as well as canned sardines and household soap. They also include certain school supplies, specified books and publications and various other transactions expressly listed in Article 91. From 1 January 2026, specified short, uncooked and unfilled pasta products are also exempt without deduction rights.
out of scope	Transactions that do not satisfy Morocco's VAT territoriality rules are outside the scope of Moroccan VAT. In addition, retail resellers become compulsorily taxable under Article 89-I-2(b) where their taxable turnover in the preceding year reaches at least MAD 2,000,000, subject to the other liability rules. This is not a general small-business VAT threshold: manufacturers, importers, wholesalers, building contractors and many service providers may be compulsorily taxable regardless of this threshold.
reverse charge	Since 1 July 2024, a VAT-registered customer may opt for the self-assessment mechanism under Article 125 quinquies of the Moroccan Tax Code for specified purchases of goods or services from suppliers that are outside the scope of VAT or exempt without deduction rights. Purchases of land and agricultural products are excluded. The customer declares the VAT due and, where entitled to deduct it, may deduct the same VAT in the return. This optional mechanism is separate from VAT withholding at source.
margin scheme	The margin scheme applies to dealers reselling second-hand movable goods capable of being reused in their existing condition or after repair, where the goods were acquired, for example, from private individuals, taxable persons carrying on exempt activities without deduction rights, non-taxable persons or other dealers applying the margin scheme. The taxable amount is based on the positive difference between the selling price and purchase price, with that difference treated as VAT-inclusive. VAT relating to goods under the margin scheme is not deductible and must not be shown separately on the invoice. A global margin method may be used where individual transactions cannot be identified. VAT Margin Scheme calculator.
VAT withholding at source	Since 1 July 2024, specified transactions have been subject to VAT withholding at source. For certain suppliers of equipment and works that do not provide a tax-compliance certificate issued within the previous six months, the customer withholds 100% of the VAT. For specified services, the withholding is generally 75% of the VAT where the required certificate is presented and 100% without it. From 1 July 2026, the mechanism also extends to specified payments to VAT-registered legal entities made by credit institutions, insurance and reinsurance companies and businesses whose turnover excluding VAT in the latest closed financial year is at least MAD 500 million. This threshold falls to MAD 350 million on 1 January 2027 and MAD 200 million on 1 January 2028.

Upcoming changes:
1 Jan 2027	The turnover threshold for businesses required to apply the extended VAT withholding rules on specified service payments falls from MAD 500 million to MAD 350 million. Moroccan Ministry of Economy and Finance – Finance Act 2026
1 Jan 2028	The turnover threshold for businesses required to apply the extended VAT withholding rules on specified service payments falls from MAD 350 million to MAD 200 million. Moroccan Ministry of Economy and Finance – Finance Act 2026
Past changes:
1 Jul 2026	VAT withholding on specified service payments is extended to payments to VAT-registered legal entities made by banks, insurance and reinsurance companies and businesses with annual turnover excluding VAT of at least MAD 500 million. The withholding is generally 75% of the VAT when the required tax-compliance certificate is presented and 100% without it. Moroccan Ministry of Economy and Finance – Finance Act 2026
1 Jan 2026	VAT exemptions are extended. Fertilisers and growing media intended exclusively for agricultural use and human or animal blood and its derivatives become exempt with input VAT deduction rights. Specified short, uncooked and unfilled pasta products become exempt without deduction rights. Moroccan Ministry of Economy and Finance – Finance Act 2026
1 Jan 2026	The final stage of the three-year VAT rate reform takes effect. Electricity rises from 18% to 20%, electricity meter rental from 15% to 20% and other passenger and freight transport from 18% to 20%. Urban and road passenger and freight transport falls from 12% to 10%, while refined sugar rises from 9% to 10%. The former 7% and 14% rates are no longer in use. Moroccan Ministry of Economy and Finance – VAT reform 2024–2026
1 Jan 2025	The second stage of the VAT rate reform takes effect. Electricity rises from 16% to 18%, electricity meter rental from 11% to 15% and other passenger and freight transport from 16% to 18%. Urban and road passenger and freight transport falls from 13% to 12%, renewable-source electricity and specified insurance intermediary services from 12% to 10%, while refined sugar rises from 8% to 9%. Moroccan Ministry of Economy and Finance – VAT reform 2024–2026
1 Jul 2024	A new VAT withholding-at-source system takes effect for specified supplies of equipment, works and services. An optional VAT self-assessment mechanism is also introduced for qualifying purchases from suppliers outside the scope of VAT or exempt without deduction rights. Moroccan General Tax Directorate
1 Jan 2024	A three-year VAT rate reform begins. Electricity moves from 14% to 16%, renewable-source electricity from 14% to 12%, urban and road passenger and freight transport from 14% to 13%, other passenger and freight transport from 14% to 16%, and refined sugar from 7% to 8%. Economy cars and non-domestic water supplied through public networks move from 7% to 10%. Several basic products also become VAT-exempt. Moroccan Ministry of Economy and Finance – Finance Act 2024

Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. The information was checked on 22 Sep 2026.

Articles:

VAT rounding: the EU, the UK and other European countries

The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.

Roundings in VAT calculation: Mathematically impossible prices?

There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.

VAT Gap - How much VAT is left uncollected in EU countries?

9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.

In Europe there is VAT - in the US sales tax

In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.

History of taxation

Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.


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See also:	VAT margin scheme for second-hand goods
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