Morocco: VAT on cross-border provision of digital services

Provisions clarifying VAT obligations of nonresident digital services providers effective 1 January 2024

VAT on cross-border provision of digital services

Morocco on 25 December 2023 published the Finance Act for 2024, which includes provisions clarifying the value added tax (VAT) obligations of nonresident digital services providers effective 1 January 2024. The tax authorities have yet to publish an implementing decree further clarifying the new rules.


Historically, Morocco has held the position that services (including digital services) are taxable in Morocco if utilized within the country. Nonresidents were generally required to appoint a local fiscal representative to fulfill their VAT obligations in business-to-consumer (B2C) and business-to-business (B2B) transactions. However, the law also includes a secondary VAT liability in case of B2B transactions if the nonresident has not appointed a local fiscal representative. In these situations, the taxable person receiving the services is liable to self-assess VAT under the reverse charge mechanism.


The Finance Act for 2024 has amended the place of provision rules for “digital services” from “the place of use” to "where the customer is established."

Digital services are defined as any services rendered via a remote communication tool, including intangible and other immaterial assets.

The tax authority Circular Note commenting on the tax provisions of the Finance Act 2024 provides the following examples:

  • Provision and hosting of IT sites, remote maintenance of programs and equipment
  • Provision and update of software and applications
  • Provision of digital content (music, films, online games, games of chance, images, videos, texts, information, etc.)
  • Subscriptions to movies and television platforms dedicated to video-on-demand (VOD) services
  • Subscription to or provision of databases
  • Remote provision of training, advice, or assistance services

Customer location

The Finance Act specifies that digital services are taxable in Morocco if they are provided to a customer whose registered office, establishment, or tax domicile is in Morocco, or to a customer residing in Morocco on an occasional basis. However, the Finance Act does not provide guidance on using specific geolocation identifiers to determine the customer's location.


The Finance Act does not include a registration threshold. The Finance Act 2024 introduces a new simplified registration mechanism for nonresident digital services providers, which has yet to be set up by the Moroccan authority.

B2B v. B2C

The simplified registration mechanism applies to digital services made to non-taxable persons (B2C sales) located in Morocco.

Marketplace rules

The Finance Act does not include any specific provisions relating to transitions facilitated by digital intermediaries such as online marketplaces. 

VAT invoicing

Although the Finance Act 2024 does not clarify the invoicing requirements applicable to nonresident digital services providers, the tax code requires taxable persons registered for VAT to issue VAT invoices, even in B2C transactions. Therefore, nonresident digital services providers likely must comply with the invoicing requirements.


The standard penalty provisions in the tax code apply. 

For more information, contact a KPMG tax professional:

Philippe Stephanny |

Chinedu Nwachukwu |

Insaf Haitof |

Akram Faraji |



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