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Blog/July 20, 2026·3 min

VAT in Morocco: the basics for auto-entrepreneurs

Outside the scope of VAT, a mandatory invoice mention, the 2026 thresholds, the current rates — and what e-invoicing changes for auto-entrepreneurs from January 2027. The essential rules, with sources.

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VAT is one of the most misunderstood topics among Moroccan auto-entrepreneurs — wrongly so, because the rules that apply to them are actually simple. Here is the essential picture, as the regime stands in 2026.

The principle: the auto-entrepreneur is outside the scope of VAT

As long as the status thresholds are respected, the auto-entrepreneur is outside the scope of VAT — which is legally different from a mere "exemption". In practice:

  • you do not charge VAT to your customers;
  • you do not file VAT returns;
  • in return, you cannot recover the VAT paid on your business purchases.

Every invoice you issue must carry the mention "TVA non applicable" (VAT not applicable). This is a formal requirement: an auto-entrepreneur invoice showing VAT is irregular.

The status thresholds in 2026

The status is reserved for activities whose annual collected turnover does not exceed:

  • MAD 500,000 for commercial, industrial and craft activities;
  • MAD 200,000 for services and authorized liberal professions.

There is also a per-customer limit: beyond MAD 80,000 of annual turnover with a single customer, the excess is subject to less favorable tax treatment — worth watching if you work mainly for one or two clients.

If you durably exceed the thresholds, you leave the status: you switch to an ordinary regime, with VAT registration once your activity is within scope.

Current VAT rates in Morocco

Even out of scope, knowing the rates is useful — to read your suppliers' invoices and to anticipate a possible exit from the status. In 2026, Morocco mainly applies:

  • 20%: standard rate (most goods and services);
  • 10%: reduced rate (certain services and products);
  • 7%: residual rate on certain products, being phased out;
  • 0%: exports.

The 2024 Finance Law started a progressive harmonization toward two target rates — 10% and 20% — by 2026. Check the rate applicable to your sector at invoicing time if you leave the status.

The 2027 blind spot: electronic invoicing

This is the change many auto-entrepreneurs did not see coming: Morocco's e-invoicing reform includes, in its January 1, 2027 wave, auto-entrepreneurs whose annual turnover exceeds MAD 500,000. That threshold matches the commerce-side cap of the status: auto-entrepreneurs close to the ceiling, or transitioning to another regime, are directly concerned.

Even below the threshold, the ground is shifting: your business customers will move to e-invoicing and will expect clean, complete documents from their providers (ICE, tax identifier). Invoicing properly now, with a tool that handles the mandatory mentions, will spare you a brutal step up later.

In short

  1. Auto-entrepreneur = outside the scope of VAT: no collection, no filing, no recovery.
  2. The "TVA non applicable" mention is mandatory on every invoice.
  3. 2026 thresholds: MAD 500,000 (commerce/industry/craft), MAD 200,000 (services), MAD 80,000 per customer.
  4. Moroccan rates: 20%, 10%, 7%, 0% — being harmonized toward 10/20.
  5. Above MAD 500,000 turnover: mandatory e-invoicing from January 2027.

Sources