Morocco VAT (TVA) Calculator: Standard & Reduced Rates (2026)

VAT in Morocco — known locally as TVA (Taxe sur la Valeur Ajoutée) — is levied under the General Tax Code (Code Général des Impôts) and administered by the Direction Générale des Impôts (DGI). As of 1 January 2026, Morocco completed a multi-year rate-consolidation reform under Finance Law n° 50-25, reducing what had been a four-rate system (20%, 14%, 10% and 7%) down to just two rates: a 20% standard rate and a 10% reduced rate. The old 7% and 14% rates have been permanently abolished, with the goods and services that previously fell under them reclassified into the remaining two rates, or in some cases moved to full exemption.

Which rate actually applies: 20% or 10%

Morocco's standard 20% rate now applies to the large majority of transactions, with the 10% reduced rate reserved for specific categories including hotels and restaurants, petroleum products, and certain legal and banking services. This is a meaningfully different structure from before 2026, when businesses and consumers had to track four separate rates — the consolidation simplifies the arithmetic, but it also means categories that used to sit at 7% or 14% have moved, in some cases up to the 10% reduced rate and in others up to the full 20% standard rate, so a rate that was correct before 2026 may no longer be.

Adding tax: MAD 1,000 at the standard rate

For a net (VAT-exclusive) price of MAD 1,000, the 20% standard rate adds MAD 200 in VAT, giving a gross (VAT-inclusive) total of MAD 1,200. At the 10% reduced rate for qualifying goods and services, the same MAD 1,000 net amount attracts only MAD 100, for a gross total of MAD 1,100.

Working backwards from a VAT-inclusive amount

To extract the net amount from a gross figure, divide by 1.20 at the standard rate or 1.10 at the reduced rate, rather than subtracting the percentage directly from the gross amount. This is the same principle across every VAT system: because the tax was calculated on the smaller net figure, a flat percentage subtraction from the larger gross figure always overstates the tax and understates the true net price.

VAT registration in Morocco

Registration becomes mandatory once a business's annual turnover exceeds MAD 500,000, administered through the DGI. Morocco is also rolling out mandatory e-invoicing under a DGI clearance model from 2026, following the pattern of similar digital tax administration reforms already in place across several other African VAT systems — a direction that generally makes the invoice itself, not just the arithmetic, increasingly central to whether VAT charged can actually be reclaimed.

Exempt supplies and cross-border transactions

A defined list of goods stays fully VAT-exempt in Morocco, including basic foodstuffs like bread, milk and sugar, along with financial services, education and healthcare. Exports are zero-rated. Cross-border digital services from foreign providers sit in a developing regulatory area — B2B supplies generally fall under a reverse-charge mechanism requiring the Moroccan business customer to self-assess TVA, while B2C digital supplies from foreign vendors remain largely outside DGI's direct collection framework as of this reform.

What this calculator doesn't cover

This tool calculates standard and reduced-rate VAT arithmetic only. It doesn't determine which specific goods or services now fall under the 20% or 10% rate following the 2026 consolidation — that's a classification question under the General Tax Code's schedules — nor does it handle exempt supplies, registration mechanics, or e-invoicing compliance. For classification questions on a specific transaction, DGI guidance or a tax advisor is the right next step.

Why the 2026 reform matters even for a simple calculation

Anyone who bookmarked a Morocco VAT calculator before 2024 is very likely working from stale rate assumptions now. The old four-rate system (7%, 10%, 14%, 20%) took three years to fully consolidate into the current two-rate structure, with different product categories moving at different points along that timeline — which means a calculator or spreadsheet that hasn't been updated since the reform began could easily be applying a rate that hasn't existed since January 2026. This tool always reflects the current, post-reform two-rate structure rather than a snapshot from partway through the transition.

Morocco's rate in African context

At 20%, Morocco's standard VAT rate matches Ghana's 20% effective rate as the highest among the countries this calculator covers, above Rwanda and Uganda's 18%, Kenya and Zambia's 16%, South Africa and Ethiopia's 15%, Egypt's 14%, and Nigeria's 7.5% at the opposite end of the spectrum entirely.