Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 7%, 10% & 14% | Zero-rated (0%) and exemp |
The local name for VAT in Morocco is Taxe sur la Valeur Ajoutée (TVA).
There are basically 4 VAT rates in Morocco:
- Standard VAT rate is 20%
- Reduced VAT rate is 7%, 10% & 14%
Recent developments
For more information about (recent) rate change developments in Morocco, please click HERE.
Standard rate: 20%
This rate applies for all transactions that take place in Morocco, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 7%, 10% & 14%%
Goods and services taxable at 7%
- Water
- Rental of water and electricity meters
- Pharmaceutical products and non-recoverable packaging of pharmaceutical products
Goods and services taxable at 10%
- Petroleum products
- Banking transactions
- Hotel operations
- Restaurant operations
- Sales and delivery operations relating to art objects
- Edible fluid oils
- Solar water heaters
Goods and services taxable at 14%
- Transport services (excluding rail transport of passengers and goods)
- Butter, excluding homemade butter
- Electricity
- Services rendered by any direct selling agent or insurance broker in respect of contracts brought by him to an insurance company (without the possibility to offset input tax)
Zero rated & Exempted
Examples of exempt supplies of goods and services, without the right to deduct VAT
- Sales of food including fresh, frozen, whole or cut fish products, other than for consumption on the spot
- Sales of recovered metals and water pumps that use solar energy or any other renewable energy used in the agricultural sector
- Services provided by insurance and reinsurance companies
Goods and services subject to Zero rate (0%) with the right to deduct VAT
- Exported goods/services
- Goods placed under customs suspensive regime
- Fertilizers
- Machinery for exclusively agricultural use
- Investment goods recorded as fixed assets, acquired by taxpayers, for a period of 36 months as from the start of the activity, excluding vehicles acquired by car rental agencies
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 5, 2021.
