Overview of KPMG's Approach and New VAT Regulations
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On December 11, 2025, Moroccan authorities issued Decree No. 2.25.882, which delineates the value added tax (VAT) obligations for nonresident providers of remote services to customers in Morocco who are not subject to VAT. This decree, effective six months post-publication in the Official Gazette (June 11, 2026), mandates that remote services delivered via digital means are subject to Moroccan VAT. Such services encompass a broad range of offerings that are provided through remote communication channels, including intangible goods and various immaterial assets.
Key Requirements for Nonresident Providers
The new VAT regime applies specifically to remote services supplied to customers in Morocco who are considered tax residents. Nonresident providers must ascertain the VAT status of each customer—whether they are subject to VAT in Morocco or not. This requirement emphasizes the need for detailed record-keeping, as the decree stipulates that providers must document the identity and VAT status of each customer for every transaction. Furthermore, the nonresident must verify that the customer is indeed tax-resident in Morocco, as per Article 88-2 of the Moroccan General Tax Code (CGI).
Importantly, the decree does not shift the VAT liability to any marketplace or platform facilitating these transactions. Instead, it places the onus on the nonresident providers to register on a dedicated electronic platform, which will be activated prior to the decree's enforcement. This registration process requires detailed information, including the provider's identity, digital presence, foreign tax identification, and contact details, among other things. Moreover, registered providers are obliged to issue invoices that meet specific criteria and maintain a comprehensive register of all remote services rendered to customers in Morocco. This register must be sufficiently detailed to enable the Moroccan tax authority to verify reported turnover and VAT owed, and it must be retained for at least ten years.
As part of compliance, nonresident providers must also submit quarterly VAT returns electronically, reflecting their total B2C gross receipts along with the corresponding VAT. Noncompliance could lead to penalties as outlined in the general VAT law. For further assistance, KPMG tax professionals are readily available to provide guidance and support through these new requirements.
As reported by kpmg.com.
