In Morocco, the Tax Identification Number (TIN) is a crucial tool for tax identification and the proper administration of taxes. It is assigned to both individuals and entities to ensure compliance with the country’s tax regulations. The TIN plays a critical role in personal income tax, corporate tax, VAT, and other tax-related matters.
Understanding the Identifiant Fiscal (IF)
In Morocco, the official Tax Identification Number is known as the Identifiant Fiscal (IF). There is a single type of TIN used for both individuals and businesses.
Format of the Identifiant Fiscal
The Identifiant Fiscal (IF) in Morocco follows a specific format. This 8-digit TIN is issued to both individuals and businesses.
Issuing Authority
The Direction Générale des Impôts (DGI) is the official authority responsible for issuing TINs (Identifiant Fiscal) in Morocco.
Importance of Accuracy
It is essential to verify the accuracy of your Identifiant Fiscal (IF) in Morocco to ensure proper tax filing and compliance. Ensuring the accuracy of your TIN is critical for both businesses and individuals in Morocco.
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TIN Verification
For TIN verification, visit the DGI Official Portal, which offers a basic PIN checker.
TIN as VAT Number
In Morocco, the Identifiant Fiscal (IF) serves as both the TIN and the VAT number for businesses.
VAT in Morocco
Value Added Tax (VAT) is the main type of indirect taxation in Morocco. VAT is a non-cumulative tax levied at each stage of the production and distribution cycle. Thus, suppliers of goods and services must add VAT to their net prices. Where the purchaser is also liable for VAT, input VAT may be offset against output VAT.
Any business providing taxable supplies in Morocco is liable to VAT register immediately. The VAT registration process is combined with the corporate income tax registration process. The obligation to VAT register is extended to non-resident businesses, which generally must appoint a local fiscal representative - unless the foreign business’ customer is willing to accept the VAT liability option. The representative is responsible for the correct VAT filings of their non-resident client.
Businesses may apply for voluntary VAT registration if they are exporters with no taxable output.
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According to the principle of territoriality, the private consumers resident in Morocco should be liable to VAT. All non-residents must register, with the Minister of Finance, an accredited representative domiciled in Morocco who will be responsible for the taxpayer’s compliance with the VAT regulations.
Finance Law 2014 introduced an optional reverse charge mechanism. Furthermore, taxpayers performing taxable transactions and transactions outside the scope of the VAT or exempt transaction without right of deduction are required to deposit in local tax which they depend a statement of prorate.
In Morocco taxpayers must only file, at the same time as the VAT return, a detailed statement of deductions with the reference of bills, the exact description of the goods, services or works, their value, the amount of tax on the invoice or memory and the mode of payment and references.
VAT Rates and Registration
As part of the 2024 Finance Law, Morocco has initiated a gradual reform of its Value Added Tax (VAT) system, aiming to simplify the current structure by converging toward two main rates: 10% and 20%. This reform is to be implemented over a three-year period.
There is no registration limit for businesses that are not established in Morocco. Individuals and legal entities with no permanent establishment in Morocco, but which engage in taxable transactions there, are subject to VAT in the same manner as residents.
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Non-Established Persons
Finance Law 2014 introduced an optional reverse charge mechanism.
VAT Returns
Businesses with an annual turnover above MAD 1 million are required to submit VAT returns on a monthly basis.
Penalties
Yes. Civil penalties and interest can be applied for errors and omissions made on tax returns, or where the tax is paid late. Penalties can also be applied where the business has failed to maintain adequate records or provide information (including additional declarations). Where a VAT invoice includes zero-rated or exempt goods or services, it must show clearly that there is no VAT payable on those goods or services.
Are any other declarations required? Yes.
Are penalties imposed in other circumstances? Yes.
Can the tax incurred by overseas businesses be claimed if they are not registered in your country? Value Added Tax (VAT) is the main type of indirect taxation in Morocco.
How to Guide - Register for VAT | Step by Step | In 10 Minutes | FTA Portal | UAE | Dubai | Taxation
Tax Compliance for Freelancers
To carry on tax accounting in Morocco for your Mellow income, you need to understand the tax residence rules and taxpayer ID numbers.
Tax Residence
Morocco taxes its residents on their worldwide income, while non-residents are taxed on their income from Moroccan sources only.
Individuals are considered tax residents of Morocco if they meet at least one of the following criteria:
If an individual stops being a tax resident of Morocco, their foreign income earned in the year they lose their resident status - from the beginning of the calendar year until the date of residency loss - will be subject to taxation in Morocco.
Taxpayer ID Number
The taxpayer identification number (Numéro d 'identification fiscale, IF) is a unique identifier assigned to both individuals and legal entities for tax reporting, conducting financial transactions (such as opening bank accounts), and other activities. It consists of eight digits and is issued by the General Tax Administration of Morocco (Direction générale des impôts, DGI), which requires an in-person visit to the tax office. Once an individual or entity is registered as a value added tax (VAT) payer (La Taxe sur la Valeur Ajoutée), a suffix "TVA" is added to their main number, indicating that such individual or entity is registered for VAT purposes.
The unified business identifier (Identifiant Commun des Entreprises, ICE) is a 15-digit number used in Morocco to identify legal entities, individual entrepreneurs, and individuals engaged in independent activities, for administrative and financial purposes.
The professional tax identification number (Numéro d’identification à la taxe professionnelle, TP) is a unique 8-digit identifier assigned to individuals conducting independent activities for the purpose of paying the professional tax. This number is mandatory for inclusion in tax filings. The issuance of this number is confirmed by a Certificate of Registration as a Payer of Professional Tax (Attestation d'inscription à la taxe professionnelle).
The National Social Security Fund registration number (Numéro d 'immatriculation à la Caisse Nationale de Sécurité Sociale, NI) is a unique identifier issued by the National Social Security Fund (La Caisse Nationale de Sécurité Sociale, CNSS) and used to identify insured persons within the social security and benefits system.
Tax Registration
Taxpayer registration is available on the SIMPL portal, which facilitates interaction with tax authorities, submission of tax filings, and online tax payments. To access the portal, users need their IF number and a security code, which can be obtained by submitting Form ADC930 to the local office of the Tax Administration at the taxpayer's place of residence. Additionally, taxpayers can submit Form ADC940 to authorize automatic tax debiting by a partner bank. Access to the portal’s features is also available through the mobile application, DARIBATI.
Required Documents for Freelancers
To legally earn income in Morocco, freelancers must submit the following documents to the tax authority at their place of residence online or in person within 30 days of starting their activity:
- Application for registration in the professional tax register (Demande d’inscription au rôle de la taxe professionnelle)
- Copy of the national identity card (CNIE)
- Lease agreement or certificate of residence
When submitting these documents, copies of the following must also be included:
- Copy of the national identity card (CNIE)
- Lease agreement or certificate of residence
Upon successful registration, the individual will be assigned the following identification numbers: IF, TP, and ICE.
Individuals are required to register with the Central Commercial Register of Morocco (Le Registre Central du Commerce) within three months of starting their business activities. This registration can be completed online by applying for a registration certificate (Demande de Certificat d’immatriculation) using Form C1, with a registration fee of 180 Moroccan Dirhams (MAD). After the application is reviewed, the freelancer will be assigned an RC number.
In the event of ceasing independent activities, the taxpayer must submit a relevant application (Demande d’attestation de radiation de la taxe professionnelle) to the tax authorities within 45 days using Form AAC350. The application must include a copy of the certificate of removal from the Central Commercial Register and a document confirming the fulfillment of all tax obligations (including the filing of tax returns relevant to the applicable tax regime) or an extract from the taxpayer registry.
Tax Regimes for Individuals
In Morocco, the following tax regimes are available for individuals engaged in independent activities:
- General tax regime
- Simplified tax regime
- Single professional contribution
General Tax Regime
Individuals fall under the general tax regime (Résultat Net Réel) by default. This regime has no restrictions regarding the types of activities or the amount of annual income and requires the payment of taxes and social contributions based on net revenue (the difference between income and business expenses).
Accounting requirements: Taxpayers are required to keep regular records of income and expenses in the form of electronic registers (Article 145 of the Tax Code of Morocco). Additionally, all invoices, receipts, waybills, and other financial documents must be retained for a period of ten years (Article 211 of the Tax Code of Morocco).
Under the general tax regime, taxpayers must pay the following taxes and contributions:
- Corporate Income Tax
- Value Added Tax (VAT)
- Professional Tax
Simplified Tax Regime
The simplified tax regime (résultat net simplifié) is available for freelancers whose annual income (excluding VAT) does not exceed:
- MAD 2,000,000 for commercial, industrial, and handicraft activities
- MAD 500,000 for service providers
Eligibility limitations: The simplified tax regime can be applied as long as the income received during two consecutive reporting periods (calendar years) does not exceed the thresholds specified for each type of activity. If the thresholds are exceeded, from January 1 of the year following the year of excess, income will be subject to taxation under the general tax regime.
Registration: If this regime is chosen at the start of the activity, the application must be submitted before May 1 of the following year, and the simplified regime will apply for the current year. If the change of regime occurs during the course of the activity, the application must be submitted by the deadline set for filing the annual comprehensive income declaration (Déclaration annuelle du revenu global) for the previous year, which is before May 1 of the current year. In this case, the regime will apply only in the next year.
Accounting requirements: Income and expense accounting is to be maintained in a simplified format.
Under the simplified tax regime, taxpayers must pay the following taxes and contributions:
- Corporate Income Tax
- Value Added Tax (VAT)
- Professional Tax
Single Professional Contribution
The single professional contribution regime (la contribution professionnelle unique, CPU) establishes a single payment that encompasses both income tax on independent activities and a social contribution for mandatory health insurance.
Eligibility limitations apply based on activity types and income thresholds, including VAT. Income eligibility thresholds are the same as those established for the simplified tax regime.
Registration: If this regime is chosen at the start of the activity, the application must be submitted before April 1 of the following year, and the single professional tax regime will apply for the current year. If the change of regime occurs during the course of the activity, the application must be submitted by the deadline set for filing the annual comprehensive income declaration (Déclaration annuelle du revenu global) for the previous year, which is before May 1 of the current year.
Taxable Digital Products in Morocco
Digital products sold by nonresident businesses to customers in Morocco are subject to value added tax (VAT). The standard VAT rate in Morocco is 20.00%. B2C transactions are taxable, while B2B transactions are handled through a reverse charge mechanism. The registration threshold is triggered upon the first B2C sale to a Moroccan customer. This means that foreign businesses must register for VAT in Morocco as soon as they make their first sale of digital products to individual consumers in the country.
To determine whether VAT applies to the sale of your digital product or service, there are three main factors to consider:
- Customer's location: You need to identify the location of your customer, as tax regulations vary by country. Common pieces of evidence for customer location determination include billing address, customer account address, IP address, and credit card country.
- Taxability of your product: Your digital product or service needs to qualify as a digital good or service for VAT purposes. This typically means that it is delivered electronically over the Internet or an electronic network, is automated, relies on technology, and is not a physical good.
- Customer's tax registration status: If you sell to other businesses located in Morocco, you should collect and validate their tax registration numbers (VAT IDs). In Morocco, sellers are not responsible for VAT on B2B transactions with the proper documentation, and the responsibility of accounting for tax is transferred to the buyer through a reverse charge mechanism.
VAT Compliance Steps
To ensure compliance with VAT regulations, here are the general steps that a US-based company selling software or other digital products should take:
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