Value-added tax in Morocco – Taxe sur la Valeur Ajoutée (TVA) – is a consumption tax added at each stage of the supply chain and ultimately paid by the end consumer. If you run a business, you collect TVA on sales and reclaim the TVA you paid on purchases. This guide explains how it works under the 2026 two-rate system.
The two VAT rates since 1 January 2026
Morocco completed its VAT reform in January 2026, consolidating the old four-rate scale (7%, 10%, 14%, 20%) into two rates:
| Rate | Typical application |
|---|---|
| 20% | Standard rate: most goods and services |
| 10% | Reduced rate: water, pharmaceuticals, transport, hospitality, banking/financial operations, certain professions |
The previous 14% and 7% reduced rates were merged into the single 10% rate. Always confirm the exact rate for your activity with the DGI. For the political/economic background of the reform, see our 2026 VAT reform guide.
HT vs TTC
- HT (hors taxe): the price before VAT.
- TTC (toutes taxes comprises): the price including VAT.
Conversions at the standard 20% rate:
HT → TTC : TTC = HT × 1.20
TTC → HT : HT = TTC ÷ 1.20
VAT amount: TVA = TTC − HT
Example: an item priced MAD 1,000 HT sells for MAD 1,200 TTC (MAD 200 VAT). Conversely, a MAD 1,200 TTC invoice contains MAD 1,000 HT + MAD 200 VAT.
Who must register for TVA
Registration is obligatory once annual turnover exceeds the thresholds (traditionally MAD 1,000,000 for trade/industry/handicraft/accommodation and MAD 500,000 for services – confirm current figures with the DGI). Auto-entrepreneurs are generally not subject to TVA; they pay the simplified CPU instead. See our auto-entrepreneur CPU guide.
How deductions work
TVA is deductible: the TVA you paid on business purchases (TVA déductible) offsets the TVA you collected on sales (TVA collectée).
- If collectée > déductible: you pay the difference to the DGI.
- If déductible > collectée: you carry the credit forward (or, in some cases, claim a refund).
This is why TVA is neutral for the business – it is the final consumer who bears it.
Filing and payment
Registered businesses file periodic TVA returns (monthly or quarterly depending on turnover) via the DGI's Simpl-TVA portal. Late or missing declarations incur fixed penalties (e.g. MAD 500 for a nil declaration filed late), so filing on time – even a TVA néant (nil return) – matters.
FAQ
What are the VAT rates in Morocco in 2026?
Two rates: 20% standard and 10% reduced, following the reform completed in January 2026 that merged the old 14% and 7% rates into 10%.
Do auto-entrepreneurs charge VAT?
Generally no – auto-entrepreneurs are not TVA-liable; they pay the CPU. They must display "TVA non applicable, art. ..." on invoices.
How do I convert TTC to HT?
Divide the TTC price by 1.20 (at the standard rate) or 1.10 (at the reduced rate). Example: 1,200 ÷ 1.20 = MAD 1,000 HT.
Sources
- Direction Générale des Impôts (DGI) – tax.gov.ma
- Simpl-TVA (DGI online portal)
- Ministère de l'Économie et des Finances – finances.gov.ma
Disclaimer
This article is informational only and reflects the 2026 two-rate system. It does not constitute tax or legal advice. Confirm your obligations with the DGI.
Marouan focuses on corporate taxation, VAT, and business compliance in Morocco. He writes practical guides that help entrepreneurs and companies navigate the Moroccan tax system with confidence.
