The grace period is over when it comes to VAT. In line with the principle of territoriality and international practices, Morocco’s General Tax Directorate (DGI) has announced the launch of Taxation on Digital Services, a platform designed to collect value-added tax (VAT) on services supplied by foreign-based entities to non-taxable customers residing in Morocco.This notably concerns companies such as ChatGPT, Netflix, Spotify, Claude, Udemy and others (Article 115 bis of the General Tax Code).The platform, which will become operational on June 11, six months after the publication of Decree No. 2.25.862 in the Official Gazette(1), will allow affected entities to complete the required formalities.These include registration and tax identification through information such as the name or trade name of the non-resident provider, its URL, electronic application or equivalent digital interface.Additional obligations include the quarterly filing of a declaration of turnover generated in Morocco, accompanied by mandatory payment of VAT collected at the single rate of 20%, with no right to deduct input VAT. The procedures also cover the recording of VAT payments and the maintenance and provision to the tax administration of an electronic register detailing services supplied remotely over the internet. As defined by Decree No. 2.25.862, the register must include identification details of customers residing in Morocco (legal entities or individuals), their VAT status (taxable or outside the scope), the nature of the service provided, the pre-tax amount and corresponding VAT amount, as well as the payment date. VAT payments may be made using all payment methods accepted by the DGI and must be accompanied by supporting information such as the operator’s SWIFT code, the relevant tax period, payment date, amount and currency used.«The General Tax Directorate (DGI) now has an operational tool to collect VAT from non-resident service providers. This closes a gap that had weighed on the fairness of the Moroccan tax system for years. Until now, the situation was paradoxical: foreign companies selling online services to Moroccan consumers not subject to VAT — mostly individuals — technically had no way to comply with their obligations. There was no dedicated gateway, procedure, or suitable tax identifier. VAT remained with the platforms because no mechanism existed to capture it. Only major multinationals managed to comply through dedicated tax teams and the reputational exposure that made opacity too risky» explained Badr Lahlou, chartered accountant. Could companies registering for VAT through the new platform be tempted to pass the additional cost on to end consumers?«It is possible, but these companies are already accustomed to this process. They operate in many countries that implemented such systems long before Morocco and have long incorporated local VAT into their pricing models. In other words, Moroccan consumers may already be paying a de facto VAT — it simply was not reaching the Treasury until now», Badr Lahlou noted.oHassan EL ARIF