Morocco –  VAT Framework in Loop: Non-Resident Providers of Digital Services 

From January 1, 2025, Morocco reinforced its tax rules regulation concerning non-resident digital service providers that provide their services to local customers, without having a fixed establishment in the country. The adoption of Article 115 bis(through Finance Law 2024) of the General Tax Code strengthened this regulatory system. 

Article 115 bis instructs that a non-resident digital service provider that makes B2C supplies to Moroccan clients (e.g., individuals or VAT-exempt entities) should register on a dedicated online platform, obtain a tax ID, file quarterly VAT returns, and pay the VAT due, without deduction rights. They must also maintain electronic records for 10 years, accessible to the tax authorities upon request. 

The Government Council adopted on December 11, 2025, an implementing Decree(no. 2.25.862), which specifies the practical details of this obligation, with effective entry into force of this obligation six months from the date of publication of the decree in the national Gazette. 

Starting Date 

The new VAT obligations for non-resident digital service providers should enter into force on June 11, 2026. 

Scope of the New Framework 

The new regime applies to all non-resident providers of digital services without a tax representative or permanent establishment in the country. There is no threshold for registration. From the first taxable B2C supply, overseas remote service providers should charge VAT. 

The scope of the digital services that are part of the new VAT regime could be seen below(non-exhaustive list):

• SaaS software publishers
• E-learning and online training platforms
• Streaming services (video, music, online games)
• Marketplaces and e-commerce platforms targeting Morocco
• Online marketing and advertising services 
• Any foreign company billing Moroccan clients for intangible services

The regime applies to final consumers(B2C), located in Morocco. For B2B supplies, the locally registered taxable person is obliged to self-assess VAT due and report tax through its tax return. 

Principal requirements for non-resident digital service providers could be summarized as follows:

• Register on the DGI’s electronic platform, specifically developed for these purposes 
• File quarterly VAT returns online 
• Pay VAT due on revenue generated in Morocco 
• Maintain a detailed e-register for all supporting documentation(receipts, returns, payments) for 10 years

VAT Registration For Non-Resident Digital Service Providers 

The regulatory framework established for non-resident digital service providers introduced the opportunity for required persons to register for VAT online, through a specifically designated tax registration portal, made available by Moroccan tax authorities. 

Moroccan tax authorities emphasized that from the moment the portal becomes available, the non-resident providers supplying in-scope remote services should register via this portal. 

The technical availability of the portal simplifies notably the registration process. Alongside the registration, the registered taxable persons could adhere to the following list of services: 

• Submission of VAT returns 
• Tax Remittance 
• Reconciliation of returns and payments 
• Correspondence with tax authorities 
• Storage of accounting documents(partly)
• Monitoring of tax status(real-time) 

The registration process requires the registration of the user on the portal as the first step, and then the successful completion of the online registration template. Minimum details to be entered into the form are: 

• Identity of the provider(type of the person(business, natural person)
• TIN of the foreign provider(country of establishment)
• Contact details 
• Activity description(SaaS, Marketing, E-Learning)
• Digital presence 
• Date of first taxable operation in Morocco
• Extract from Commercial Chamber(Tax Incorporation documentation)
• ID from a legal representative 

Taxable persons(registered for VAT in Morocco) are obliged to keep a report of their taxable supplies for 10 years, from the first taxable supply. 

Nonresident providers should submit quarterly VAT returns electronically via the dedicated platform, with accompanying receipts of the corresponding payment.  

Concluding Remarks 

The Moroccan government has been working for quite a while on the development of the tax framework for overseas providers of remote services to local customers. The present situation, where “mainly” it was “left” to foreign service providers to register for VAT, through domestic tax representatives, has shown not so great results. 

The establishment of the simplified tax registration system for non-resident providers of digital services took some time,  and as the latest information indicates, starting from this June, everything technically should be in place, and non-resident providers of remote services should start collecting VAT, if they haven’t started this already. 

The provisions were in place for more than a year, as the continuous notes from the tax authorities were published; however, the technical deficiencies of the portal and procedures, probably “led” some taxable persons in scope, to “wait” a little longer. 

Takeaway 

Frequently Asked Questions