Morocco: new developments in VAT collection

In Morocco, the General Directorate of Taxes (DGI) has implemented new measures concerning the withholding of VAT at source, which came into force on July 1, 2024.

According to a press release from the DGI, legal entities and individuals whose income is determined according to the actual net income regime or the simplified net income regime, who pay remuneration for the provision of services to taxable individuals who have presented the certificate justifying their tax compliance with respect to the obligations to declare and pay taxes, duties and charges provided for by the General Tax Code (CGI), are required to withhold tax at source at a rate of 75% of the amount of VAT, for the service provision operations referred to in Article 89-I (5°, 10° and 12°) of the CGI appearing on list B annexed to Decree No. 2-06-574 issued for the application of VAT. If they do not present the certificate of regularity available online at the Simpl-Attestations online service on the DGI Internet Portal, withholding tax will be applied at 100% of the VAT amount.