A number of changes to the Tax Code have been implemented in Morocco to help improve VAT compliance. The measures include:
- Input VAT suffered may now be deducted immediately in the next VAT return. Previously it could only be offset against output in the month following the payment of the VAT.
- Where taxable businesses are owed VAT at a reporting period end (VAT credit, they will now be able to submit an application for repayment at the year end. Previously, companies would have to carry the credit indefinitely or until there was more VAT to be repaid. The exceptions to these old rules were for exporters and suppliers of nil-rated supplies. Foreign companies now opting not to register should be cautious as there is no facility to recover input VAT otherwise.
- The is now an option to use the VAT reverse charge for non-Moroccan businesses who do not appoint a local fiscal representative.
Moroccan VAT (Taxe sur la Valeur Ajoutée) is levied at 20%, with a number of reduced VAT rates. Taxable businesses must submit monthly VAT returns if their annual turnover is about MAD 1 million per annum; otherwise quarterly returns.