In brief: The export of services from Morocco benefits from a VAT exemption with right to deduction under article 92-I-1° of the CGI. The exporting business does not charge VAT to its foreign client, but retains the right to deduct — and to obtain a refund of — the VAT borne on its purchases. Learn more: VAT territoriality | VAT credit refund | VAT qualification.
The export of services is a key driver of the Moroccan economy, driven notably by the offshoring, information technology, consulting and digital marketing sectors. For businesses providing these services to foreign clients, the question of the applicable VAT regime arises systematically. This guide covers the complete tax framework applicable in 2026.
Principle: exemption with right to deduction (art. 92-I-1°)
Article 92-I-1° of the General Tax Code exempts from VAT services rendered for export by taxable persons. This exemption applies to the last service performed on Moroccan territory having the direct and immediate effect of achieving the export.
In practice, this means that:
- The exporting business does not charge VAT to its foreign client;
- It retains the right to deduct the VAT borne upstream on its purchases of goods and services;
- The resulting VAT credit is structural (since no VAT is collected on sales) and refundable under the conditions set out in article 103 of the CGI.
It is important not to confuse this exemption with that provided for in article 91 of the CGI (exemption without right to deduction), which does not allow recovery of input VAT. Export falls exclusively under article 92.
According to Circular 717, the exported services covered include notably studies, expertise, publishing, advertising films, consulting and marketing, as well as services relating to exported goods on behalf of businesses established abroad (inspection, expertise, transit, brokerage, warehousing).
Territoriality conditions: three cumulative criteria
For a service to be classified as an export and benefit from the exemption, VAT territoriality rules require the meeting of three cumulative conditions, as specified by Circular 717:
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The client is located outside Moroccan territory — The recipient of the service must be established abroad. This may be a legal or natural person not resident in Morocco.
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The contract is denominated in foreign currency — Invoicing and payment must be in convertible foreign currency. This criterion demonstrates the international nature of the transaction.
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The service is exploited or used outside Morocco — This is the determining criterion. Under article 88 of the CGI, a service is deemed to be performed in Morocco when it is exploited or used on Moroccan territory. Conversely, if the exploitation of the service takes place entirely abroad, the service falls outside the territorial scope of Moroccan VAT.
If any of these three conditions is not met, the service remains subject to VAT at the standard rate (20% or 10% depending on the nature of the service).
Burden of proof: It is the service provider’s responsibility to demonstrate that the use or exploitation of the service takes place outside Moroccan territory. The supporting documents to be retained are the invoice in the name of the foreign client and proof of payment in foreign currency.
Practical examples
The distinction between exported service and taxable service rests on the place of effective exploitation of the service. Here are concrete cases drawn from Circular 717 and administrative doctrine:
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Call centre for a foreign client — Calls are directed to clients located abroad. The use of the service takes place outside Morocco. Exemption applicable.
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Consulting firm: market studies exploited abroad — The Moroccan firm carries out a study for a foreign principal, the results of which are exploited exclusively in a third country. Exemption applicable, subject to supporting documents.
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Moroccan engineer: study for a building to be constructed in Morocco — Even if the client is foreign and the contract is in foreign currency, the object of the study (a building located in Morocco) implies exploitation on Moroccan territory. VAT due in Morocco.
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IT company: software development for a foreign client — The software is developed in Morocco but deployed and used exclusively abroad. Exemption applicable.
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Training company: training of staff for an industrial project located in Morocco — Although ordered by a foreign company, the training is used in Morocco. VAT due in Morocco.
Main sectors concerned
The export of services in Morocco covers many sectors of activity, including:
- Offshoring and call centres — nearshoring, BPO, customer relationship management;
- Information technology — software development, systems integration, outsourced IT management, cybersecurity;
- Consulting and engineering — market studies, management consulting, financial engineering;
- Digital marketing — content creation, advertising campaign management, SEO/SEM;
- Distance learning — e-learning, professional coaching for foreign learners;
- Publishing and audiovisual production — advertising films, post-production on behalf of foreign clients.
These sectors structurally generate a VAT credit due to the absence of VAT collected on their exported services.
Invoicing: mandatory information
The business exporting services must issue its invoices in accordance with the requirements of the CGI and Circular 717. The key elements of the invoice are as follows:
- Denominated in foreign currency — The invoice must be issued in the contract currency (EUR, USD, GBP, etc.);
- Exemption notice — The invoice must bear the notice: “VAT exemption — Article 92-I-1° of the General Tax Code”;
- No VAT charged — The amount invoiced is exclusive of tax, with no VAT line;
- Full identification of the parties (company name, address, tax identification number of the provider, contact details of the foreign client);
- Detailed description of the service rendered.
The invoice, together with the proof of payment in foreign currency, constitutes the key document in the event of a tax audit or VAT credit refund application.
Suspensive regime: purchases under VAT suspension (art. 94)
In addition to the exemption, businesses exporting services can benefit from the suspensive regime provided for in article 94 of the CGI. This regime allows purchases of goods and services without paying VAT upstream, thus avoiding the build-up of a VAT credit.
Ceiling for purchases under suspension
Purchases under suspension are limited to the amount of exported services turnover of the previous year (n-1).
Eligibility conditions
To benefit from the suspensive regime, the business must meet the following conditions (Circular 717):
- Be categorised — hold a certificate issued by the DGI;
- Be in regular standing with respect to all taxes and duties;
- Keep regular accounts and a materials ledger enabling the tracking of purchases under suspension;
- Obtain a suspension purchase certificate, valid for the year of issue.
If goods or services acquired under suspension are allocated to transactions other than export, the business must carry out the regularisation (payment of the corresponding VAT) before the end of the month following delivery.
Note: The suspensive regime is not an exemption. It is a mechanism for the temporary suspension of VAT, which becomes chargeable if the conditions are not met.
VAT credit refund
A business that exports services and does not benefit from the suspensive regime accumulates a structural VAT credit: it pays VAT on its purchases but does not collect any VAT on its sales. This credit is refundable under articles 103 and 103 bis of the CGI.
Refund ceiling
The refundable amount is capped at the VAT notionally calculated on the exempt turnover:
Ceiling = Exported turnover x applicable VAT rate
If the credit exceeds this ceiling, the difference is carried forward to subsequent periods.
Frequency and procedure
- Quarterly application — The refund application must be filed at the end of each quarter;
- Limitation period — Applications are time-barred after the expiry of a one-year period from the end of the quarter during which the VAT was paid;
- Simplified procedure — Businesses whose accounts are certified by an auditor or chartered accountant benefit from an expedited procedure (decree no. 2-18-638 of 4 March 2019).
Supporting documents
The application must be accompanied by:
- A summary statement of turnover achieved under exemption;
- A summary statement of purchases with recoverable VAT;
- Sales invoices in the name of foreign clients;
- Proof of payment in foreign currency;
- For the simplified procedure: a certificate from the auditor confirming the accuracy of the information.
For a comprehensive guide on the procedure, see our dedicated article: VAT credit refund in Morocco.
Filing obligations
Even though the business does not collect any VAT on its sales, it remains required to file its VAT returns according to the applicable frequency (monthly or quarterly). The return will mention:
- Turnover achieved under exemption (exempt with right to deduction line);
- Deductible VAT on purchases of goods and services;
- VAT credit carried forward or subject to a refund application.
The business must also retain all supporting documents: client invoices, contracts in foreign currency, bank credit advice attesting to the repatriation of foreign currency, and any document proving that the service is exploited abroad.
Reference texts
- General Tax Code 2026 (PDF) — Articles 88 (territoriality), 92-I-1° (export exemption), 94 (suspensive regime), 103 and 103 bis (refund)
- Circular 717, Volume 2 — VAT — Detailed comments on service exports and territoriality
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.
FAQ
My IT company exports 100% of its services — do I need to register for VAT?
Yes. The export of services is a transaction within the scope of VAT, exempt with right to deduction (art. 92-I-1°). VAT registration is mandatory and essential in order to exercise the right to deduction and apply for a VAT credit refund. Without tax identification, the business would be unable to recover VAT on its purchases or benefit from the suspensive regime.
How to prove that the service is exploited abroad?
The burden of proof lies with the service provider. Evidence establishing the exploitation of the service abroad includes: the service contract denominated in foreign currency and mentioning the place of exploitation, invoices in the name of the foreign client, bank credit advice attesting to the repatriation of foreign currency, and any technical or commercial documentation demonstrating that the result of the service is used outside Morocco (reports delivered, access to platforms hosted abroad, etc.).
Can I benefit from the suspensive regime (art. 94)?
Yes, provided you meet the following criteria: be categorised by the DGI, be in regular tax standing, keep regular accounts with a materials ledger, and obtain an annual suspension purchase certificate. The ceiling for purchases under suspension is limited to the exported services turnover of year n-1. This regime is particularly advantageous for businesses that wish to avoid the cash flow immobilisation associated with VAT credit.
What is the VAT credit refund timeline?
The timeline depends on the procedure used. The simplified procedure, reserved for businesses whose accounts are certified by an auditor or chartered accountant, allows faster processing. The standard procedure can take several months depending on the volume of the application and the checks carried out by the tax administration. In all cases, the application must be filed quarterly, and the limitation period is one year from the end of the quarter during which the VAT was paid.
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