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 and has not accredited a tax representative, the Moroccan client takes over the tax: a taxable client reverse charges it on its own return (output VAT and deductible VAT declared simultaneously, art. 115 of the CGI); a client carrying on an activity outside the scope of VAT withholds it at source on each payment and remits it to the Treasury (art. 117-III of the CGI). Check the regime applicable to your transaction with the VAT qualification tool.
—
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.
—
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.
—
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 foreign provider is the person liable for the tax. Since 1 January 2024, article 115 bis of the CGI requires any non-resident supplier of dematerialised remote services, failing accreditation of a tax representative in Morocco (art. 115), to:
- register on the dedicated electronic platform of the DGI and obtain a tax identifier;
- file, before the end of the first month of each quarter, the return of turnover generated in Morocco with non-taxable clients during the previous quarter and pay the corresponding tax, without any right to deduction;
- keep a register of the services supplied, retained for ten years and made available to the administration electronically.
The client is deemed to have its tax domicile in Morocco whenever one of the indicators in article 88-2° is met: a Moroccan address provided for invoicing, payment by a bank card issued by an institution established in Morocco, a Moroccan IP address or the Moroccan telephone dialling code (FL 2025, CN 736). Netflix, Spotify or similar subscriptions taken out by Moroccan individuals therefore bear the 20% VAT collected and remitted by the platform.
—
VAT withholding tax: the case of the out-of-scope client
Legal basis
Article 117-III of the CGI establishes a VAT withholding tax (WHT) on the tax due on taxable transactions carried out by non-resident persons for clients established in Morocco carrying on activities excluded from the scope of VAT (public administrations, out-of-scope bodies, pure holding companies, etc.). The specific obligations of non-resident providers are set out in articles 115 and 115 bis of the CGI. This mechanism secures the collection of VAT where the Moroccan client does not file a VAT return on which it could reverse charge the tax.
Who withholds, who reverse charges?
| Moroccan client | Mechanism | Legal basis |
|---|---|---|
| Liable for VAT | Reverse charge: output VAT and deductible VAT declared on the same return; no withholding | art. 115 para. 3 |
| Outside the scope of VAT | Withholding at source of the VAT due on each payment, remitted to the tax administration’s collector during the month following that of the payment | art. 115 para. 4 and 117-III |
The partial 75% withholding with a tax compliance certificate provided for in article 117-V applies to resident taxable providers and does not apply to foreign providers.
Worked example
A SaaS subscription taken out with an American publisher for 10,000 MAD excl. VAT per month:
| Element | Taxable client (full right to deduction) | Out-of-scope client |
|---|---|---|
| Price excl. VAT of the service | 10,000 MAD | 10,000 MAD |
| VAT (20%) | 2,000 MAD | 2,000 MAD |
| Output VAT declared by the client | 2,000 MAD (reverse charge) | — |
| Deductible VAT | 2,000 MAD | — |
| VAT WHT to remit to the Treasury | 0 MAD | 2,000 MAD |
| Net VAT cost for the client | 0 MAD | 2,000 MAD |
For more on this mechanism, see our article on VAT withholding tax in Morocco.
—
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 (debit) basis regime (art. 95, para. 2 of the CGI), in which case VAT becomes chargeable upon invoicing or the recording of the receivable in the accounts; partial collections and deliveries made before the debit nonetheless remain taxable. The option is declared to the local tax office before 1 January or within thirty days of the start of business; the taxpayer attaches the list of its debtor clients and pays the corresponding tax within thirty days of sending that declaration.
For an in-depth analysis of chargeability rules, see our article on VAT taxable event and chargeability in Morocco.
—
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 (out-of-scope clients only)
Where the Moroccan client carries on an activity excluded from the scope of VAT, it cannot reverse charge the tax on a VAT return: it must withhold it on each payment made to the non-resident provider and remit it to the tax administration’s collector during the month following that of the payment, together with a payment slip in the form prescribed by the administration (art. 117-III of the CGI). A taxable client has no withholding to operate: it reverse charges the VAT on its periodic return (point 1 above).
3. Retention of supporting documents
The business must retain for 10 years (art. 211 of the CGI), a period distinct from the 4-year tax statute of limitations:
- 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.
—
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.
—
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.
—
FAQ
Who pays VAT on Netflix or Spotify in Morocco?
It depends on the client. For individuals (B2C), the foreign platform (Netflix, Spotify, Apple Music, etc.) is liable for Moroccan VAT at 20%: it must register on the DGI’s electronic platform, declare its turnover generated in Morocco quarterly and pay the tax (art. 115 bis of the CGI). For taxable businesses that subscribe to these services professionally, it is the Moroccan client that reverse charges the VAT on its periodic return and deducts it simultaneously if its activity gives rise to that right (art. 115 of the CGI), with no withholding tax. Only clients carrying on an activity outside the scope of VAT withhold tax at source on each payment (art. 117-III of the CGI).
Is a foreign SaaS publisher liable for Moroccan VAT?
A foreign SaaS publisher without an establishment in Morocco carries out services that are taxable in Morocco whenever the service is exploited or used in Morocco or supplied remotely to a client with its registered office, establishment or tax domicile there (art. 88 of the CGI). It may accredit a tax representative domiciled in Morocco who declares and pays the VAT on its behalf (art. 115). Failing that, two situations arise: for its taxable clients, the VAT is reverse charged by the client on its own return (an out-of-scope client withholds it at source, art. 117-III) and the publisher has no return to file; for its non-taxable clients (individuals), the publisher must register on the DGI’s electronic platform, declare each quarter the turnover generated in Morocco and pay the corresponding VAT (art. 115 bis).
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, for the month or quarter of payment. 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 (art. 115 of the CGI), making the transaction cash flow neutral; where a prorata applies, only the deductible fraction is recovered. No withholding tax is to be operated by a taxable client: the withholding under article 117-III only concerns clients carrying on an activity outside the scope of VAT, who remit it to the collector during the month following payment.
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).
— READ ALSO
VAT in Morocco: Complete guide
