In brief: The VAT suspensive regime (art. 94 of the CGI) allows exporters and certain taxable persons exempt with right to deduction to purchase under VAT suspension, i.e. to acquire goods and services free of tax upon authorisation from the tax administration. This is not an exemption: the tax is suspended and becomes chargeable in case of diversion. Check the regime applicable to your transaction with the VAT qualification tool.
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What is the VAT suspensive regime?
The suspensive regime is a mechanism provided for in article 94 of the General Tax Code that allows certain businesses to purchase goods and services without paying VAT to their suppliers. The supplier invoices exclusive of tax, upon presentation of a suspension purchase certificate issued by the tax office.
Unlike the exemption with right to deduction (art. 92) which definitively exempts export sales from VAT, the suspensive regime only defers the chargeability of the tax. The VAT is “in suspense”: if the goods acquired are effectively allocated to export or to a transaction qualifying for exemption, the tax is never claimed. However, if the goods are diverted from their intended purpose, the VAT becomes immediately chargeable, plus penalties.
Circular Note No. 717 specifies that the suspensive regime “is not an exemption: it avoids requiring the exporter to pay the tax that they would have to bear on their purchases”.
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Why does the suspensive regime exist?
Exporting businesses benefit from exemption with right to deduction under article 92-I-1° of the CGI: they do not charge VAT on their export sales, but recover the VAT paid upstream. In practice, this generates a structural and permanent VAT credit, since deductible VAT always exceeds collected VAT (which is nil or nearly so).
VAT credit refund is possible, but involves administrative delays and a cash flow advance that is often burdensome for exporting businesses.
The suspensive regime solves this problem: instead of paying VAT then requesting a refund, the exporter does not advance the VAT at all. No VAT credit forms on purchases made under suspension, which eliminates the cash flow problem at source.
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Who can benefit from the suspensive regime?
1. Exporters of goods (art. 92-I-1°)
Businesses that directly export products, goods and merchandise can purchase under VAT suspension the goods necessary for their export activity. The regime covers both manufacturer-exporters and trader-exporters. FOB sales, CIF sales and exports via commission agent are covered, as detailed by Circular 717.
2. Exporters of services (art. 92-I-1°)
Businesses that provide services for export (studies, expertise, consulting, marketing, IT development, etc.) benefit from the same regime. The required supporting documents are the invoice in the name of the foreign client and proof of payment in foreign currency.
For a comprehensive overview of VAT on exported services, see our article on VAT and export of services in Morocco.
3. Other beneficiaries of article 92
Beyond exporters in the strict sense, the suspensive regime may benefit other categories of operators covered by article 92 of the CGI, notably:
- Businesses holding contracts financed by foreign donations or international cooperation (art. 92-I-20° to 23°)
- Businesses operating in free export zones (art. 92-I-36°)
All these beneficiaries must satisfy the same formal and substantive conditions detailed below.
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Eligibility conditions
Circular 717 details the strict conditions to which the benefit of the suspensive regime is subject:
1. Tax categorisation
The business must hold a categorisation certificate issued by the General Tax Directorate (DGI). This categorisation certifies the business’s tax compliance and conditions access to the suspensive regime. It is an essential prerequisite.
2. Tax regularity
The business must be in regular standing with respect to all its tax obligations: VAT, CIT and PIT returns filed on time, taxes paid or benefiting from a payment plan, no unresolved tax disputes.
3. Regular accounts and materials ledger
The exporter must keep regular accounts compliant with standards in force in Morocco, as well as a materials ledger (or materials accounting) enabling the tracking of the allocation of goods acquired under suspension. This materials ledger must trace:
- Inputs: purchases under suspension (merchandise, raw materials, packaging, services)
- Outputs: exports actually carried out
- Any transfers to other uses (which trigger regularisation)
The materials ledger is an essential document in the event of a tax audit: it constitutes proof that purchases under suspension were indeed allocated to export.
4. Commitment of non-use for other purposes
The exporter must make a formal commitment to allocate goods acquired under suspension exclusively to transactions qualifying for the regime (export or transactions referred to in art. 92). This commitment is included in the certificate application and binds the business vis-a-vis the tax administration.
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Formalities: the certificate application
Application procedure
To benefit from the suspensive regime, the exporter must send a suspension purchase certificate application to the local tax office on which it depends. The application includes:
- A valid categorisation certificate
- Proof of exporter status (customs export declarations, export invoices, customs certificate)
- The amount of export turnover achieved during the previous year (n-1), which determines the ceiling for purchases under suspension
- The allocation commitment — exclusive use of purchases for export activity
- Proof of the keeping of a materials ledger
Ceiling for purchases under suspension
Purchases under suspension are not unlimited. They are capped at the amount of export turnover achieved during the previous year (n-1), pursuant to article 94 of the CGI.
Example: If a business achieved export turnover of 5,000,000 MAD in 2025, it may make purchases under VAT suspension for a maximum amount of 5,000,000 MAD excl. VAT in 2026.
This ceiling applies identically to goods exporters and service exporters, each within the limit of their own export turnover for year n-1.
Validity of the certificate
The suspension purchase certificate is valid for the calendar year of issue only. It must be renewed each year. The supplier receiving this certificate is entitled not to charge VAT on the deliveries concerned.
Transactions covered
The suspensive regime covers the following purchases, provided they are directly related to export activity:
- Merchandise destined for export in their original state or after transformation
- Raw materials entering into the manufacture of exported products
- Non-returnable packaging used for conditioning exported products
- Services necessary for export: transport, handling, transit, subcontracting directly related to the production of exported goods or services
Purchases of capital goods (machinery, equipment, premises) do not fall under the suspensive regime. VAT on these acquisitions is either deducted under standard conditions, covered by the exemption provided for in article 92-I-6° (capital goods of the first 36 months), or subject to a refund under article 103 of the CGI.
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Penalties for diversion
The suspensive regime is based on trust: the administration grants a cash flow advantage in return for an allocation commitment. Failure to honour this commitment is severely penalised.
VAT regularisation
If materials, merchandise or products acquired under suspension are allocated to a purpose other than export (domestic sale, internal consumption unrelated to export, transfer to a non-beneficiary third party, etc.), the exporter must carry out the regularisation of VAT. The evaded tax becomes immediately chargeable at the rate applicable to the transaction concerned (20% or 10% depending on the nature of the good or service).
Regularisation deadline
Regularisation must be carried out spontaneously before the end of the month following the month of delivery or allocation to a use other than export. Beyond this deadline, the late payment penalties provided for by the CGI apply:
- 15% surcharge for the first month of delay
- 0.50% surcharge per additional month or fraction of a month
Withdrawal of the certificate
In case of proven diversion or repeated failings, the tax administration may withdraw the suspension purchase certificate, depriving the business of the benefit of the regime for the future. The business will then have to bear VAT on its purchases and use the VAT credit refund mechanism.
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Difference between the suspensive regime and exemption with right to deduction
Both mechanisms benefit exporters but operate differently:
| Criterion | Suspensive regime (art. 94) | WRD Exemption (art. 92) |
|---|---|---|
| Nature | Temporary suspension of VAT on purchases | Definitive exemption from VAT on sales |
| VAT on purchases | Not charged by the supplier | Charged, then deducted or refunded |
| VAT credit | Does not form | Forms structurally |
| Cash flow | No VAT advance | VAT advance pending refund |
| Formalities | Annual certificate + materials ledger | VAT returns + refund application |
| Scope covered | Current purchases related to export | All deductible purchases |
| Penalty | VAT chargeable if diverted | No specific penalty |
In practice, the two mechanisms are complementary. The exporter uses the suspensive regime for current purchases (raw materials, merchandise, packaging, services) and the deduction-refund mechanism for capital goods and overheads.
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Reference texts: General Tax Code 2026 — Art. 94 — Circular Note No. 717 — VAT (Volume 2) — Circular Note No. 735 (FL 2024) — Circular Note No. 737 (FL 2026)
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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 can purchase under VAT suspension in Morocco?
The suspensive regime (art. 94 of the CGI) is open to exporters of goods and services benefiting from the exemption with right to deduction provided for in article 92-I-1° of the CGI, as well as certain other beneficiaries of article 92 (free export zones, contracts financed by international cooperation). The business must be categorised by the DGI, in regular tax standing, and keep a materials ledger. The ceiling for purchases under suspension corresponds to the export turnover of the previous year (n-1).
What is the validity period of the suspension purchase certificate?
The suspension purchase certificate is valid for the calendar year of issue only. It must be renewed each year with the local tax office. Renewal requires the business to continue meeting all eligibility conditions (categorisation, tax regularity, materials ledger, allocation commitment). The supplier must verify the certificate’s expiry date before invoicing exclusive of tax.
What happens in case of diversion of purchases under suspension?
If goods acquired under VAT suspension are allocated to a use other than export (domestic sale, internal consumption unrelated to export, transfer to a third party), the exporter must regularise the VAT within the month following the diversion. The evaded VAT becomes chargeable at the applicable rate (20% or 10%), plus late payment penalties (15% for the first month, then 0.50% per additional month). The administration may also withdraw the suspension purchase certificate, depriving the business of the benefit of the regime.
Does the suspensive regime cover capital goods?
No. The suspensive regime covers only current purchases directly related to export activity: merchandise, raw materials, non-returnable packaging and services necessary for export. For capital goods (machinery, equipment, premises), the exporter deducts VAT under standard conditions or benefits from the 36-month exemption (art. 92-I-6° of the CGI). Any VAT credit may be the subject of a refund application.
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