Published on · By the IT LABS PRO team
Value added tax (VAT) is a consumption tax that businesses collect on behalf of the State. It appears on almost every quote and invoice. In Morocco, the reform started by the 2024 Finance Act simplified the rates: in 2026, only two remain. Here is how to calculate VAT simply, with examples, and what to watch out for. This article is a practical guide: for the rules that apply to your business (exemptions, special regimes), refer to the General Tax Code (CGI) or ask your accountant.
For an instant calculation, use our free Morocco VAT calculator: net to gross and gross to net, at 20% and 10%.
VAT rates in Morocco in 2026
Since 1 January 2026, at the end of the reform started by the 2024 Finance Act, the General Tax Code has only two rates:
| Rate | What it covers | Reference |
|---|---|---|
| 20% | Standard rate, for most goods and services | CGI, article 99-A |
| 10% | Reduced rate, only for the operations listed in the law | CGI, article 99-B |
The former 7% and 14% rates were phased out between 2024 and 2026. Some operations are also exempt or outside the scope of VAT: always check how your products or services are treated in the current edition of the CGI.
Net, gross and VAT: the definitions
Moroccan invoices use the French abbreviations HT and TTC. Here is what they mean:
- HT (hors taxes), the net amount: the price before VAT.
- VAT (TVA in French): the amount of tax, calculated on the net price.
- TTC (toutes taxes comprises), the gross amount: the price the customer pays, net + VAT.
The formulas
From net to gross
Gross amount = net amount × (1 + rate)
At 20%: gross = net × 1.20. At 10%: gross = net × 1.10.
VAT from the net amount
VAT = net amount × rate
From gross to net
Net amount = gross amount ÷ (1 + rate)
At 20%: net = gross ÷ 1.20. Careful: you divide; you do not take 20% off the gross amount.
VAT from the gross amount
VAT = gross amount − net amount, or directly VAT = gross × rate ÷ (1 + rate).
Worked examples
Example 1: net → gross at 20%
A service invoiced at 10,000 MAD net. VAT = 10,000 × 0.20 = 2,000 MAD. Gross = 12,000 MAD.
Example 2: gross → net at 20%
A purchase of 6,000 MAD including VAT. Net = 6,000 ÷ 1.20 = 5,000 MAD. VAT = 1,000 MAD.
Example 3: net → gross at 10%
An operation under the reduced rate, 3,500 MAD net. VAT = 350 MAD. Gross = 3,850 MAD.
Example 4: an invoice with several lines
When an invoice has lines at different rates, calculate VAT for each rate, then add them up. For each rate, the invoice must show the net base and the matching VAT amount.
Common mistakes
- Taking 20% off a gross price to find the net price: 12,000 − 20% = 9,600, whereas the correct net amount is 10,000. You have to divide by 1.20.
- Using a former rate (7% or 14%) after the reform.
- Rounding line by line without a rule: small differences add up on long invoices. Apply one consistent rounding rule.
- Leaving out mandatory details on the invoice: the company’s identifiers, net base, VAT rate and amount, gross total.
- Confusing an exemption with a zero rate: the consequences for VAT recovery are not the same.
VAT in your quotes and invoices
To avoid mistakes, let your invoicing tool calculate VAT rather than doing it by hand. Good software applies the right rate to each item automatically, handles rounding and produces a summary per rate. This also matters for electronic invoicing, which will require structured, reliable data, VAT rates included.
Automating the calculation in your business software
If you still use spreadsheets for quotes and invoices, sales management software or an ERP will save you time and make your figures reliable: rates set per item, invoices generated from quotes, VAT summaries for your returns. When off-the-shelf tools do not match your rules (discounts, special terms, several activities), custom software adapts to the way you work.
The formulas at a glance
| You know | You want | Formula (20%) | Formula (10%) |
|---|---|---|---|
| Net | Gross | Net × 1.20 | Net × 1.10 |
| Net | VAT | Net × 0.20 | Net × 0.10 |
| Gross | Net | Gross ÷ 1.20 | Gross ÷ 1.10 |
| Gross | VAT | Gross − (gross ÷ 1.20) | Gross − (gross ÷ 1.10) |
Frequently asked questions
What are the VAT rates in Morocco in 2026?
Since 1 January 2026, two rates: 20% (standard rate, article 99-A of the CGI) and 10% (reduced rate, article 99-B). The 7% and 14% rates were abolished by the reform started in 2024.
How do I find the net price from the gross price?
Divide the gross amount by 1 plus the rate: for example, 6,000 MAD including VAT ÷ 1.20 = 5,000 MAD net at 20%.
Is my business under the standard rate or the reduced rate?
The reduced rate only covers the operations specifically listed in the CGI; most goods and services fall under the standard rate. Check your case in the current edition of the CGI or with your accountant.
Is the calculation the same for an invoice in dirhams and in foreign currency?
The formulas are the same; the rules for converting and declaring foreign-currency operations are a question for your accountant.
In short
In 2026, Moroccan VAT has two rates, 20% and 10%. To go from net to gross, multiply by 1 plus the rate; to go from gross to net, divide by 1 plus the rate. And to stop doing these calculations by hand, let your business software do them: discover our custom management and invoicing software.
Sources (in French)
- Maroc.ma, “La DGI publie l’édition 2026 du Code général des impôts”: maroc.ma
- Direction Générale des Impôts, General Tax Code: tax.gov.ma
- Upsilon Consulting, “Réforme TVA Maroc 2024-2026 : calendrier et nouveaux taux”: upsilon-consulting.com