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Input/Output VAT

Calculate net VAT to pay or recoverable VAT credit.

Results

Net VAT = Output VAT − Input VAT. Positive = pay to state. Negative = recoverable VAT credit.

📐 VAT payable by a business

VAT payable = output VAT (on sales) − deductible VAT (on purchases)
If negative, it is a VAT credit carried forward or refunded

📊 Example monthly VAT return

ItemAmount
Output VAT on sales24,000 MAD
Deductible VAT on purchases15,000 MAD
VAT payable9,000 MAD

💼 VAT return scenarios

Sales 120,000 excl. (20%), purchases 70,000 excl. (20%)

Output 24,000 − deductible 14,000 = 10,000 MAD payable.

Purchases larger than sales

This creates a VAT credit carried forward or claimed for refund.

💡 Practical tips

  • Keep all purchase invoices to justify deductible VAT.
  • Your filing regime (monthly or quarterly) depends on turnover.
  • Meet filing and payment deadlines to avoid penalties.

⚠️ Limits and disclaimer

  • Some purchases do not give a right to deduction (non-business expenses).
  • Refund rules are subject to specific conditions.
Official sources: General Tax Code · Directorate General of Taxes (tax.gov.ma) · 2026 Finance Act.
Last updated: February 2026.

❓ Frequently asked questions

How is VAT payable calculated?

By subtracting deductible VAT on purchases from output VAT on sales.

What if deductible VAT is larger?

A VAT credit arises, carried forward or claimed for refund under conditions.

When do I file VAT?

Monthly if turnover exceeds a threshold, otherwise quarterly.