In brief: Digital services (SaaS, streaming, online advertising, e-commerce of intangible goods) rendered in Morocco are subject to VAT at the standard rate of 20%. When the provider is a non-resident without an establishment in Morocco, the Moroccan client must reverse charge the VAT and apply a withholding tax of 75% of the VAT amount. Check the regime applicable to your transaction with the VAT qualification tool.
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What do “digital services” mean for VAT purposes?
The General Tax Code does not create an autonomous category of “digital services”. These services fall within the scope of VAT under the taxable transactions provided for in article 89 of the CGI, as soon as they are performed by a taxable provider or are deemed to be performed in Morocco under the territoriality rules of article 88.
In practice, digital services cover notably:
- Software as a Service (SaaS): subscriptions to management platforms, CRM, online accounting, collaborative tools (Microsoft 365, Google Workspace, Salesforce, etc.).
- Streaming and digital content: subscriptions to video platforms (Netflix, Amazon Prime Video), music (Spotify, Deezer, Apple Music), e-books and online gaming.
- Online advertising: purchases of advertising space on social networks (Meta Ads, Google Ads, LinkedIn Ads, TikTok Ads) and programmatic platforms.
- E-commerce of intangible goods: software downloads, mobile applications, online training (e-learning), digital licences.
- Hosting and cloud computing services: cloud infrastructure (AWS, Azure, Google Cloud), website hosting, data storage.
All these services constitute services in the fiscal sense. The applicable VAT regime depends on the place of performance of the service and the status of the provider.
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Applicable rate: 20% (standard rate)
Digital services do not appear in any of the reduced rate lists provided for in article 99-B of the CGI 2026. They fall neither under accommodation and catering, nor banking transactions, nor urban and road transport, nor any other category benefiting from the 10% rate.
Consequently, digital services are subject to the standard rate of 20% (art. 99-A of the CGI).
As a reminder, in 2026, following the reform launched by the 2024 Finance Law (CN 735), Morocco has only two VAT rates: 20% (standard) and 10% (reduced). The former rates of 7% and 14%, progressively abolished between 2024 and 2026, are no longer applicable. For more details on the rate structure, see our article on the VAT reform 2024-2026 or use the VAT qualification tool to identify the regime applicable to your transaction.
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Taxation of foreign providers: the reverse charge mechanism
Territoriality principle
For Moroccan VAT purposes, a service provided remotely in dematerialised form by a non-resident person without an establishment in Morocco is deemed to be performed in Morocco when the client has their registered office, establishment or tax domicile in Morocco (art. 88 of the CGI, as amended by the FL 2024 and commented upon by CN 735). This new territorial connection criterion, aligned with OECD recommendations, supplements the traditional criterion of use or exploitation in Morocco set out by Circular Note No. 717.
Thus, a digital service provided by a foreign company (American, European, Asian) to a client established in Morocco is taxable in Morocco, regardless of the place of performance of the service or the location of the provider.
Reverse charge mechanism (B2B)
When the foreign provider is not established in Morocco and does not have a permanent establishment in the territory, it cannot collect Moroccan VAT. It is therefore the Moroccan client (taxable business) that must reverse charge the VAT:
- The client receives an invoice exclusive of tax (excl. VAT) from the foreign provider.
- It calculates the VAT due at the rate of 20% on the amount exclusive of tax.
- It declares this VAT on its periodic VAT return (SIMPL TVA) under the VAT due on acquisitions of services from non-residents.
- If the client is fully taxable (100% of its activity is taxable), it can simultaneously deduct this reverse-charged VAT as input, making the transaction cash flow neutral.
Non-taxable clients (B2C)
For individuals and persons not liable for VAT, the situation is different. In the absence of a mandatory registration mechanism for foreign digital platforms in Morocco (such as the OSS one-stop shop in the European Union), VAT on Netflix, Spotify or other service subscriptions consumed by Moroccan individuals is not effectively collected by the foreign provider.
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VAT withholding tax: 75% of the VAT amount
Legal basis
Article 115 of the CGI establishes a VAT withholding tax (WHT) mechanism applicable to services provided by non-resident persons without an establishment in Morocco. This mechanism, strengthened by the FL 2024 (CN 735), aims to secure the collection of VAT on cross-border services, particularly digital services.
Withholding rate
The VAT withholding rate is set at 75% of the VAT amount normally due on the service. This high rate reflects the legislator’s intention to ensure effective collection of the tax on transactions involving foreign providers.
In the absence of a tax compliance certificate (ARF) from the non-resident provider, the withholding may rise to 100% of the VAT amount. In practice, as the majority of large foreign digital platforms do not hold a Moroccan ARF, the withholding will often be 100% of the VAT.
Worked example
A Moroccan company subscribes to a SaaS service from an American publisher for 10,000 MAD excl. VAT per month:
| Element | Amount |
|---|---|
| Price excl. VAT of the service | 10,000 MAD |
| Theoretical VAT (20%) | 2,000 MAD |
| VAT withholding (75% of 2,000) | 1,500 MAD |
| VAT reverse-charged and declared | 2,000 MAD |
| Deductible VAT (if fully taxable) | 2,000 MAD |
| VAT WHT to remit to the Treasury | 1,500 MAD |
The withholding of 1,500 MAD is remitted to the Treasury by the Moroccan client. The WHT amount is offset against the VAT due by the client for the same period. For more on this mechanism, see our article on VAT withholding tax in Morocco.
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Taxable event and chargeability: the cash basis regime
For services, the taxable event for VAT is constituted by collection of the price, remuneration or a deposit (art. 95 of the CGI, commented upon by Circular Note No. 717). This principle fully applies to digital services.
In practice, for a SaaS subscription invoiced monthly:
- VAT becomes chargeable at the time of payment of each monthly instalment, and not on the invoicing date.
- If the Moroccan client pays by bank card or transfer, the chargeability date corresponds to the date of the actual debit.
- For an annual subscription paid in advance, VAT is chargeable in full on the date of full payment.
The business may opt for the accrual basis regime (art. 95-2° of the CGI), in which case VAT becomes chargeable upon the recording of the receivable in the client account. This option must be exercised in writing to the tax office.
For an in-depth analysis of chargeability rules, see our article on VAT taxable event and chargeability in Morocco.
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Filing obligations of the Moroccan client
Moroccan businesses that acquire digital services from foreign providers must comply with the following obligations:
1. Declaration of reverse-charged VAT
The reverse-charged VAT must appear on the periodic VAT return (monthly or quarterly depending on the business’s regime) filed via the SIMPL TVA portal. The amount appears:
- As output VAT (line for acquisitions of services from non-residents)
- As deductible VAT (if the client has full right to deduction, the transaction is neutral; if the client applies a deduction prorata, only the corresponding fraction is deductible)
2. Payment of the withholding tax
The VAT withholding (75% or 100% of the VAT as applicable) must be remitted to the Treasury within the same deadlines as the VAT return. It is declared on a specific payment slip.
3. Retention of supporting documents
The business must retain for the duration of the tax statute of limitations (4 years):
- Invoices from the foreign provider (including those issued in foreign currency)
- Proof of payment (bank statements, transfer orders)
- Contracts or general terms of the subscribed service
- Details of the calculation of reverse-charged VAT and WHT
4. Electronic invoicing
The new electronic invoicing rules require enhanced traceability. Invoices from foreign digital providers must be integrated into the business’s accounting system with a reference to the reverse charge regime applied.
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VAT and export of digital services from Morocco
Conversely, a Moroccan company that provides digital services to foreign clients (software development, IT consulting, digital marketing for foreign clients) benefits from the exemption with right to deduction provided for in article 92-I-1° of the CGI.
The conditions are as follows:
- The service must be intended to be exploited or used outside Moroccan territory
- The invoice must be issued in the name of the foreign client
- Payment must be made in foreign currency via an approved intermediary
This exemption allows the exporting business to recover the VAT paid upstream on its purchases (premises, IT equipment, licences, cloud hosting) and, where applicable, to obtain a VAT credit refund if the credit is structural. The exporter can also use the suspensive regime (art. 94 of the CGI) for its current purchases related to export.
For more information, see our article on VAT and export of services in Morocco.
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Reference texts: General Tax Code 2026 (PDF) — Circular Note No. 717 — VAT (Volume 2) — Circular Note No. 735 (FL 2024) — Circular Note No. 737 (FL 2026)
— TOOLS
VAT Qualification Morocco 2026 — Free tool: Determine in just a few clicks whether your transaction is outside scope, exempt or taxable, and at what rate. Compliant with the 2026 CGI.
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FAQ
Who pays VAT on Netflix or Spotify in Morocco?
Under the current Moroccan tax framework, foreign streaming platforms (Netflix, Spotify, Apple Music, etc.) do not directly collect Moroccan VAT from individuals. For taxable businesses that subscribe to these services professionally, it is the Moroccan client that must reverse charge VAT at the rate of 20% and apply the withholding of 75% of the VAT amount (or 100% in the absence of an ARF). For individuals (B2C), VAT is not effectively collected in the absence of a registration mechanism for foreign platforms in Morocco.
Is a foreign SaaS publisher liable for Moroccan VAT?
A foreign SaaS publisher without a permanent establishment in Morocco is not directly liable for Moroccan VAT. Its services are nonetheless taxable in Morocco when they are used or exploited on Moroccan territory by a client with its registered office or tax domicile there (art. 88 of the CGI). It is the taxable Moroccan client that bears the reverse charge and withholding obligation. The foreign provider does not need to register or file VAT returns in Morocco.
How to declare reverse-charged VAT on digital services?
Reverse-charged VAT is declared on the periodic VAT return filed via the SIMPL TVA portal. The VAT amount calculated at 20% on the foreign provider’s invoice exclusive of tax appears as output VAT. If the business has the full right to deduction, it records the same amount as deductible VAT, making the transaction cash flow neutral. The withholding (75% or 100% of the VAT) is paid on a specific payment slip and offset against the VAT due for the same period.
Are digital services exported from Morocco taxable?
No. Digital services provided by a Moroccan company to foreign clients and exploited outside Moroccan territory benefit from the exemption with right to deduction (art. 92-I-1° of the CGI). The Moroccan provider invoices exclusive of tax and retains the right to deduct VAT borne upstream, which may generate a refundable VAT credit (art. 103 of the CGI).
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