Standard 20% VAT, reduced rates available. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGI rates.
Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.
Morocco applies a value-added tax known as Taxe sur la Valeur Ajoutée (TVA) at a standard rate of 20%. TVA was introduced in Morocco in 1986, making it one of the earliest VAT adopters in Africa. Morocco has multiple reduced rates: 14% for transport, butter, and certain petroleum products; 10% for hotel and restaurant services, legal fees, and certain food products; and 7% for water, electricity, pharmaceuticals, and school supplies. Exports are zero-rated. Exempt supplies include basic food items (bread, couscous, milk, sugar, dates), medical equipment, agricultural inputs, and educational services. The Direction Générale des Impôts (DGI) administers TVA. Businesses with annual turnover exceeding MAD 500,000 for services or MAD 2 million for goods must register. Monthly TVA returns are due by the 20th of the following month for monthly filers, or quarterly. Morocco has a sophisticated electronic filing system (SIMPL). Morocco has been progressively reforming its TVA system to reduce the number of rates and simplify compliance. Input TVA can be deducted against output TVA, with refund mechanisms for businesses in credit positions.
Morocco has four TVA rates: 20% (standard), 14% (transport, butter), 10% (hotels, restaurants, certain foods), and 7% (water, electricity, pharmaceuticals, school supplies). Exports are zero-rated at 0%.
The threshold varies: MAD 500,000 annual turnover for service providers and MAD 2 million for businesses selling goods. Businesses exceeding these thresholds must register for TVA with the Direction Générale des Impôts.
Exempt items include basic food staples (bread, couscous, milk, sugar, dates), medical equipment, agricultural inputs, certain educational services, and products sold by small businesses below the registration threshold.
TVA returns can be filed monthly (due by the 20th of the following month) or quarterly, depending on business size. Morocco's SIMPL electronic filing platform provides online declaration and payment options.
Yes, Morocco has been progressively reforming its TVA system to reduce the number of rates, simplify compliance, and broaden the tax base. The goal is to move toward fewer rates while maintaining exemptions for essential goods.