VAT in Morocco: rates and how to calculate it on your invoices

VAT (value added tax) is the tax you collect on behalf of the state on most of your sales. Understanding it means invoicing correctly and avoiding nasty surprises at return time.

What is the VAT rate in Morocco?

The standard VAT rate in Morocco is 20%. It applies to most goods and services. Reduced rates exist for certain activities: 14%, 10% and 7%, depending on the nature of the product or service.

• 20%: standard rate, most services and products.
• 14%: for example transport and certain services.
• 10%: for example catering and some financial operations.
• 7%: for example certain everyday consumer goods.

If you are unsure which rate applies to your activity, check with the tax authority (Direction Générale des Impôts) or your accountant: the rate depends precisely on the good or service being invoiced.

How to calculate VAT on an invoice

The calculation starts from the amount before tax (HT). You apply the rate to get the VAT, then add the two together for the total including tax (TTC):

• Amount before tax × VAT rate = VAT amount.
• Amount before tax + VAT amount = total including tax.

Example: for a 1,000 MAD service before tax at 20%, the VAT is 200 MAD and the total is 1,200 MAD.

Before tax vs. including tax: what is the difference?

The pre-tax amount is your price before tax, the part you keep. The total including tax is what the client pays. The difference, the VAT, is collected and then paid to the state. Clearly showing the pre-tax amount, the VAT and the total is mandatory in Morocco.

Let Fatourtk do the maths

Entering VAT by hand risks rounding errors and wrong totals. Fatourtk applies the right rate to each line, calculates the VAT and total automatically, and shows the required breakdown on every invoice. Try it for free, no card required.