Invoicing and Tax regulation in Morocco
Invoicing Regulation in Morocco
In Morocco, invoicing regulations are governed by the Moroccan General Tax Code. All businesses must issue and retain invoices for all transactions, both for tax purposes and as proof of purchase. It is mandatory for invoices to include detailed information such as the date, invoice number, identification of the seller and buyer, description of goods or services, and the applicable tax rate and amount.
Real-Time Reporting / Fiscalization
Real-time reporting and fiscalization are not strictly enforced in Morocco. Businesses are required to keep books and records for at least ten years and periodically report to the tax authorities, however, there’s no specific requirement for real-time reporting. Despite this, implementing such a system can greatly simplify compliance and mitigate risk.
E-Invoicing in Morocco
The adoption of e-invoicing is on the rise in Morocco, however, it is currently not mandatory. Businesses can choose to use e-invoices, but they must abide by the requirements laid out in the tax code, such as appropriate record keeping and ensuring that the recipient agrees to receive e-invoices.
VAT/GST/Tax Compliance in Morocco
For businesses operating in Morocco, compliance with VAT/GST and tax regulations is imperative. The current standard VAT rate in Morocco is 20%, though reduced rates of 7% and 14% apply to certain goods and services. The General Tax Code stipulates that VAT must be charged on all goods and services supplied in Morocco and it must be reported on a monthly basis. Specific rules and requirements apply for b2b, b2c, and b2g transactions, thus understanding and applying them correctly is crucial to achieving tax compliance.