Morocco: New VAT Regulations for Non-Resident Service Providers
In a move to modernize tax laws and adapt to the changing landscape of global commerce, the Moroccan Ministry of Finance (MMF) has issued a circular outlining amendments to Value Added Tax (VAT) regulations concerning remote services provided by non-residents.
Expansion of VAT Scope:
Under the Finance Law (FL) of 2024, significant revisions have been made to VAT territoriality rules, as outlined in Article 88 of the General Tax Code (CGI). These changes aim to broaden the scope of VAT application to cover remotely delivered services provided by non-residents. According to the amendments, transactions are now deemed to occur in Morocco if services are utilized or exploited within the country, regardless of the physical location of the service provider or consumer.
Introduction of New Obligations:
FL 2024 introduces Article 115-bis in the CGI, imposing obligations on non-resident service providers without establishments in Morocco. These providers are now required to:
- Register on a dedicated electronic platform and obtain a tax identification number.
- Submit monthly turnover declarations through the designated platform and remit corresponding taxes without deduction.
- Maintain a comprehensive register of services provided, accessible to Moroccan tax authorities electronically for ten years.
Expert Assistance for VAT Compliance:
For businesses seeking guidance on navigating these new VAT regulations and ensuring compliance in Morocco, Global VAT Compliance (GVC) offers specialized expertise and support.
