Morocco is tightening its tax framework for foreign digital service providers. During a government meeting held Thursday in Rabat, a new decree was adopted to update the country’s VAT rules, specifically targeting non-resident companies that offer digital services to Moroccan consumers. This move aligns with recent amendments introduced by the 2025 Finance Law and continues the government’s broader push to bring its tax system in line with the global digital economy.
The new measure, presented by the Minister of Equipment and Water on behalf of the Delegate Minister for the Budget, modifies the 2006 VAT implementation decree. It specifically reflects updates made to Articles 88 and 115 bis of Morocco’s General Tax Code, which were revised under the 2025 Finance Law. These changes follow an initial wave of reforms launched in 2024, which, for the first time, imposed tax obligations on remote service providers not physically based in Morocco.
The updated decree aims to accomplish two key objectives: to clarify how the new rules will be applied, and to ensure they are consistent with international standards for taxing digital services. To this end, a new article has been added to the 2006 decree, outlining the specific steps that foreign providers must follow to comply with Moroccan VAT requirements.
The decree sets out the procedures for registering on the designated online platform, how to report revenue generated from Moroccan users, the process for paying the appropriate VAT, and additional administrative steps required for compliance. This structured approach is meant to ensure that foreign digital companies are brought into the national tax fold, reducing loopholes and leveling the playing field for local and international service providers alike.
