In brief — VAT self-assessment is a mechanism established by Article 115 of the General Tax Code (GTC) whereby a Moroccan client declares and pays VAT on services acquired from a non-resident provider. This mechanism is distinct from VAT withholding tax (Art. 117), which follows a different logic and has different financial effects. For the general framework, see our guide on VAT in Morocco, our article on VAT withholding tax and our VAT qualification tool.
What is VAT self-assessment?
When a provider established outside Morocco supplies a service whose place of taxation is located on Moroccan territory, that provider is generally not registered for Moroccan VAT and therefore cannot charge or remit it to the Treasury. To prevent any loss of tax revenue, the legislator introduced the self-assessment mechanism: the Moroccan client substitutes for the foreign provider.
In practice, the client:
- Receives an invoice excluding tax from the non-resident provider.
- Calculates the applicable Moroccan VAT on the invoiced amount.
- Declares this VAT as output tax on their own return.
- Simultaneously deducts the same amount as input tax, provided they have a full right to deduction.
The result is a financially neutral operation for the taxable client with a full right to deduction. No additional cash outflow occurs, but the tax administration maintains a record of the transaction and preserves the VAT base.
Legal basis (Art. 115 GTC)
Self-assessment is grounded in Article 115 of the General Tax Code. This provision states that any VAT-liable person acquiring services from a non-resident provider must declare and pay the corresponding tax.
The services in scope are those whose place of taxation is Morocco, in accordance with the territorial rules defined in Articles 88 and following of the GTC. For an in-depth analysis of these rules, see our article on VAT territoriality.
The applicable rate corresponds to the nature of the service: the standard rate of 20%, or reduced rates of 10% or 14% as provided for by the GTC.
Transactions in scope
Services provided by non-residents
Self-assessment primarily concerns standard service provisions supplied by foreign companies without a permanent establishment in Morocco. The most common categories include:
- Consulting and studies: legal, financial, strategic advisory, market research.
- Engineering and technical assistance: equipment commissioning, software maintenance, on-site technical training.
- Intellectual property royalties: patents, trademarks, know-how, copyrights.
- Management services and management fees: intra-group services billed by a foreign parent company.
Dematerialised digital services (Finance Act 2024)
The 2024 Finance Act extended the scope of VAT to dematerialised digital services provided remotely by non-resident providers. The following are now expressly covered:
- SaaS (Software as a Service) software and cloud computing services.
- Online advertising (Google Ads, Meta Ads, LinkedIn Ads, etc.).
- Audio and video streaming services.
- Distance learning and e-learning platforms.
- Digital marketplaces and online intermediation services.
For Moroccan taxable businesses acquiring these services, the self-assessment mechanism applies in full. For a detailed treatment, see our dedicated article on VAT and digital services in Morocco.
Royalties and licence fees
When royalties are paid to a non-resident for the use of patents, trademarks or technical processes, they fall within the scope of self-assessment. Article 91-XI of the GTC specifies that royalties included in the import base of goods are treated under standard customs rules, but standalone royalties (not linked to an importation of goods) fall under self-assessment pursuant to Article 115.
Filing procedure
Self-assessment follows four precise steps:
- Calculate the VAT: apply the corresponding rate to the tax-exclusive amount shown on the non-resident provider’s invoice. Example: MAD 200,000 x 20% = MAD 40,000.
- Declare as output VAT: report MAD 40,000 in the output VAT section of the return on the DGI’s SIMPL platform.
- Deduct simultaneously: if the company has a full right to deduction, enter the same MAD 40,000 as deductible input VAT on the same return.
- Pay the net balance: where the right to deduction is complete, the net balance of the self-assessment is zero. If the right to deduction is partial (prorata), the difference constitutes an actual cost.
The return must be filed for the period during which the service was rendered or the invoice was issued, depending on the company’s tax regime (cash or accrual basis).
Fiscal representation (Art. 115 bis)
When a non-resident provider supplies digital services directly to Moroccan individuals (B2C), self-assessment cannot apply since the end customer is not a taxable person. Article 115 bis of the GTC then requires the foreign provider to:
- Appoint a fiscal representative established in Morocco, who will be jointly liable for the payment of VAT, or
- Register directly with the Moroccan tax administration through a simplified procedure.
The fiscal representative must maintain compliant accounting records, file VAT returns on behalf of the non-resident and ensure tax payment within the legal deadlines. This obligation particularly concerns major international digital platforms selling services to Moroccan consumers.
Self-assessment vs withholding tax: key differences
These two mechanisms are often confused. Here is a comparative table to clarify:
| Criterion | Self-assessment (Art. 115) | Withholding tax (Art. 117) |
|---|---|---|
| Supplier | Non-resident without establishment in Morocco | Resident or non-resident |
| Mechanism | Client declares output VAT and deducts it | Client withholds VAT from payment and remits to Treasury |
| Cash flow impact on supplier | None: supplier invoices excluding tax | Yes: supplier receives reduced payment (75% or 100% of VAT) |
| Neutrality for client | Yes, if full right to deduction | No: no additional deduction linked to the withholding |
| Filing | On the client’s VAT return | On a specific withholding tax form |
For a deeper understanding of the withholding regime, see our comprehensive article on VAT withholding tax in Morocco.
Practical example
Case: a Moroccan VAT-registered company purchases an annual software licence from a French publisher for MAD 200,000 excluding tax.
- Applicable VAT: 20% x 200,000 = MAD 40,000.
- Self-assessment: the Moroccan company declares MAD 40,000 as output VAT on its SIMPL return.
- Deduction: it simultaneously enters MAD 40,000 as deductible input VAT.
- Net impact: 40,000 - 40,000 = MAD 0 if it has a full right to deduction.
- Payment to supplier: the French publisher receives the full MAD 200,000. Its cash flow is not affected.
If the Moroccan company is a partially exempt entity with a deduction prorata of 80%, the effective cost would be 40,000 x 20% = MAD 8,000.
Reference texts
- General Tax Code (GTC) — Articles 88, 91-XI, 115, 115 bis, 117.
- Circular Note No. 717 — Commentary on VAT provisions.
- Circular Note No. 735 — Finance Act 2024, VAT provisions on digital services.
Practical tool: use our VAT qualification tool to determine whether your transaction falls under self-assessment or withholding tax.
Frequently asked questions
When is VAT self-assessment required in Morocco?
Self-assessment is mandatory whenever a Moroccan taxable person acquires a service from a non-resident provider without a permanent establishment in Morocco, provided the place of taxation of the service is Moroccan territory. This now includes dematerialised digital services since the 2024 Finance Act.
Is self-assessment financially neutral for the company?
Yes, provided the company has a full right to deduction. The VAT declared as output tax is immediately deducted on the same return. However, for companies whose deduction prorata is below 100%, the non-deductible portion constitutes a definitive cost.
What is the difference between self-assessment and VAT withholding tax?
Self-assessment (Art. 115) is a declarative mechanism where the client substitutes for the non-resident supplier to declare VAT. Withholding tax (Art. 117) is a deduction made by the client from the payment due to the supplier. Self-assessment is cash-flow neutral for the supplier; withholding tax reduces the amount actually received by the supplier.
