Overview
Article 88 of the Moroccan Tax Code (MTC) sets out the VAT territoriality rules and specifies that a transaction is deemed to have been carried out in Morocco:
- When the sale is made under the conditions of for the delivery of goods in Morocco.
- In the case of any other transactions, when the service is provided, the right assigned or the object leased is exploited or used in Morocco, or when the online service is provided remotely by a non-resident person with no establishment in Morocco to a customer whose registered office, establishment, or tax domicile is in Morocco.
Otherwise, the liability to pay VAT lies with the Moroccan customer. The payment obligations differ depending on the VAT status of the customer i.e. B2B or B2C as follows:
(i) The customer is subject to VAT (B2B): If the non-resident entity does not appoint a local representative, VAT should be paid under the reverse charge mechanism. Under this mechanism the Moroccan customer is required to declare and pay the VAT due on the taxable operations carried out by the non-resident service provider, on its own VAT return and is entitled to the right to deduct the VAT so declared, in the same VAT return.
(ii) The customer is not subject to VAT (B2C): The Finance Law 2024 introduced new reporting and payment measures for non-resident companies rendering online remote services to non-taxable customers (B2C).
In the absence of a tax representative in Morocco, non-resident service providers rendering online remote services to non-taxable (B2C) customers, are required to comply with the following obligations:
- Register on a dedicated electronic platform and obtain a Tax ID.
- Submit an electronic VAT return via this platform before the end of each month. VAT withheld at source by non-taxable customers should not be reported by the non-resident service provider.
- Pay VAT, without the deduction right, on services provided to non-taxable customers during the previous month.
- Maintain a detailed register of services provided in Morocco, to be presented to the tax administration electronically upon request. This register must be kept for a period of 10 years.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | B2C and B2B |
| Liability to remit VAT | If a tax representative is appointed, the representative is responsible for paying VAT on both B2B and B2C transactions. If the non-resident supplier does not have a tax representative in Morocco:
|
| VAT rate | 20% |
| Taxable value | Invoiced remuneration of services |
| Effective date | 18 June 2026 |
| VAT registration threshold | None |
| Tax invoice | No specific measures were introduced for the specific case of digital services. Subject to the publication of implementing regulations, invoices issued by non-resident service providers performing online remote services should include general commercial information, in particular for B2B transactions for tax deductibility purposes. |
Services in scope
The Moroccan Tax Code (MTC) defines the term "online remote service" as any service delivered through a remote communication tool, including intangible goods and other immaterial assets.
For guidance, the Circular Note of 2024 Finance Law includes in the “online remote services” the following services:
- Supply and hosting of web sites, remote maintenance of programs and hardware
- Supply of software and applications and their updates
- The supply of digital content (music, films, online games, gambling, images, videos texts, information, etc.)
- Subscription to film and TV platforms dedicated to video-on-demand (VOD) services
- Subscription or provision of databases
- Remote provision of training, consulting, or assistance services
Registration and compliance
The non-resident supplier has the option to use a tax representative for both B2B and B2C transactions . When a tax representative is not appointed:
- B2B: The non-resident supplier has no registration obligations, the Moroccan customer must report the VAT due as explained in the overview.
- B2C: The non-resident supplier must register on a dedicated platform and adhere to compliance rules set out below.
An implementing decree, Decree No. 2‑25‑862, relating to the provisions of Article 115 bis of the Moroccan Tax Code governing the obligations of non-resident digital service providers, was recently published on 18 December 2025.
This decree states that from 18 June 2026, the non-resident provider must register on an electronic platform established by the tax administration and provide the following information:
- The full name or corporate name of the non-resident provider.
- The website, electronic application, or equivalent digital interface.
- The address of the provider’s domicile or registered office.
- The tax identification number in the country of residence, where applicable.
- The full name, email address, and phone number of the provider’s representative(s) (contact person).
- The nature of the service provided.
- The date of the first service performed in Morocco.
After registration, a tax identification number is assigned to the non-resident provider as well as communicated to the provider.
The decree further states that the non-resident provider must file, via the same electronic platform and using an administration‑approved template, a quarterly VAT return declaring the turnover generated in Morocco from services supplied to non‑VAT‑registered customers.
This declaration must be submitted before the end of the first month of each quarter.
Invoicing
The invoice should mention common commercial information. When the non-resident service provider appoints a tax representative in Morocco, the invoice must mention the VAT number as well. There are no currency restrictions.
VAT on costs
Non-resident suppliers of ESS cannot recover VAT on costs incurred in Morocco.
VAT on cryptocurrency/digital assets
Currently, Morocco does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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