In brief — Every VAT taxable person in Morocco must periodically file a turnover declaration. The regime is monthly when annual turnover reaches or exceeds 1,000,000 MAD, and quarterly below this threshold. Filing is mandatory online through the SIMPL portal. To check whether you are liable, use our VAT qualification tool.
Who Must File a VAT Return?
The filing obligation applies to several categories of taxpayers:
- Mandatory taxable persons (Art. 89 of the Tax Code): any individual or legal entity carrying out a taxable activity on a habitual or occasional basis, regardless of legal status, nationality or form of intervention.
- Optional taxable persons (Art. 90): businesses that, although exempt or outside the scope, have voluntarily opted for VAT liability in order to recover input tax.
- Exempt persons with the right to deduct (Art. 92): exporters, companies established in free zones and certain operators benefiting from specific exemptions. They must file returns even where collected VAT is nil, so as to exercise their right to refund.
- Persons subject to VAT withholding at source: under recent reforms, certain entities withhold VAT on payments to taxable suppliers, creating a specific filing obligation.
Even where no turnover is recorded during a given period, the taxable person must file a “nil” return. Failure to file triggers penalties.
Monthly vs Quarterly Regime
The Tax Code distinguishes two filing regimes based on the taxpayer’s level of activity.
Monthly Regime
The monthly regime applies to taxable persons whose annual turnover reaches or exceeds 1,000,000 MAD for the preceding financial year. The return must be filed by the end of the month following the relevant period. For example, January VAT must be declared and paid by 28 February at the latest.
This regime covers the majority of medium to large commercial and industrial companies, as well as high-turnover liberal professions.
Quarterly Regime
The quarterly regime is reserved for taxable persons whose annual turnover is below 1,000,000 MAD. The return covers a calendar quarter and must be filed by the end of the month following the quarter. For instance, the Q1 return (January–March) is due by 30 April at the latest.
Newly created businesses are automatically placed under the quarterly regime for the first 12 months of activity, regardless of projected turnover.
Comparison Table
| Criterion | Monthly Regime | Quarterly Regime |
|---|---|---|
| Annual turnover threshold | ≥ 1,000,000 MAD | < 1,000,000 MAD |
| Frequency | Every month | Every quarter |
| Filing deadline | End of the following month | End of the month following the quarter |
| Number of returns/year | 12 | 4 |
| New businesses | No (unless turnover ≥ threshold after 12 months) | Yes, during the first 12 months |
Content of the VAT Return
The VAT return must include the following elements:
- Taxable turnover broken down by rate: transactions at the standard rate (20%), reduced rates (14%, 10%, 7%) and exempt or out-of-scope transactions.
- Output VAT: total tax invoiced to customers during the period.
- Input VAT: split between VAT on capital assets (equipment, machinery) and VAT on current expenses (raw material purchases, services, overheads).
- VAT credit carried forward: credit balance from the previous return.
- VAT payable or credit: difference between output VAT and total deductible VAT. A positive balance is the VAT payable; a negative balance is a credit that can be carried forward or refunded.
- Withholding tax suffered: where applicable, the amount of VAT withheld by customers. For more details, see our article on VAT withholding at source.
SIMPL E-Filing
E-filing is mandatory for all VAT taxable persons without exception. It is carried out through the tax administration portal at simpl.tax.gov.ma.
The procedure involves the following steps:
- Registration: creating an account on the SIMPL portal using the company’s tax identifiers (tax ID, ICE, trade register number).
- Filing the return: entering data online according to the prescribed electronic form.
- Validation: checking the amounts entered and confirming the return. An electronic acknowledgement of receipt is generated.
- Payment: settling the VAT due directly online via e-payment.
For a complete guide to the platform, see our article SIMPL: Practical Guide to CT, PIT and VAT.
Payment of VAT
Payment of VAT must be made within the same deadlines as the filing of the return: end of the month following the period for the monthly regime, end of the month following the quarter for the quarterly regime.
Accepted payment methods are:
- Bank transfer to the Treasury account.
- Direct debit from the company’s bank account.
- Online payment via the SIMPL portal (e-payment).
Cash payment is not permitted for settling VAT. All amounts due must go through a traceable payment method.
Annual Pro-Rata Declaration
Taxable persons carrying out both taxable transactions and exempt transactions without the right to deduct (mixed taxable persons) must file an annual pro-rata declaration by 1 March each year. This declaration is used to regularise the right to deduct VAT based on the percentage of use of goods and services in transactions giving rise to deduction.
For an explanation of the calculation method, see our guide on the VAT deduction pro-rata.
Cessation of Activity
Where a business ceases activity, the taxable person must:
- File a cessation declaration within 30 days of the effective date of the activity ending.
- Repay the VAT originally deducted on remaining stock and capital assets not fully depreciated, in proportion to the remaining adjustment period (5 years for movable property, 20 years for immovable property).
- File a final return covering the period from the start of the last filing period to the cessation date.
Comparative Example
Company A — Annual turnover: 800,000 MAD (quarterly regime)
- Files VAT quarterly: Q1 (Jan.–Mar.) by 30 April, Q2 (Apr.–Jun.) by 31 July, Q3 (Jul.–Sep.) by 31 October, Q4 (Oct.–Dec.) by 31 January of the following year.
- Submits 4 returns per year.
Company B — Annual turnover: 3,000,000 MAD (monthly regime)
- Files VAT monthly: January VAT by 28 February, February VAT by 31 March, and so on.
- Submits 12 returns per year.
- The administrative burden is higher but cash flow is monitored more closely.
Penalties for Late Filing
Failure to comply with filing obligations exposes the taxpayer to financial sanctions:
- 15% surcharge for spontaneous late filing beyond the first 30 days.
- 10% surcharge for a delay not exceeding 30 days after the deadline.
- 5% surcharge where filing is on time but payment is partial.
- Late payment penalty: 0.50% per month or fraction of a month of delay on the amount due.
- Minimum charge: 500 MAD per return, even where no tax is due.
For a full overview of penalties, see our article VAT Penalties and Sanctions in Morocco.
Legal References
- General Tax Code (CGI) — Articles 89 to 112 on VAT taxable persons’ obligations.
- Circular Note 717 — Tax administration commentary on filing procedures.
Tools
- VAT Qualification Tool — Check your VAT liability status in a few clicks.
FAQ
When must a VAT return be filed in Morocco?
The return must be filed by the end of the month following the relevant period: every month for the monthly regime (turnover ≥ 1,000,000 MAD) or every quarter for the quarterly regime (turnover < 1,000,000 MAD). New businesses fall under the quarterly regime for the first 12 months.
Is SIMPL e-filing mandatory for VAT?
Yes, e-filing through the SIMPL portal is mandatory for all VAT taxable persons without exception. Paper filing is no longer accepted. Payment must also be made online.
What happens when a business ceases activity?
The taxable person must file a cessation declaration within 30 days of the activity ending and repay the VAT deducted on remaining stock and capital assets not fully depreciated. A final VAT return must cover the residual period.
