Morocco Introduces Gradual VAT Withholding at Source for Large Firms Starting July 2026

• Morocco’s 2026 finance law introduces phased VAT withholding at source on services, starting July 2026 and fully implemented by January 2028.
• The measure initially targets banks, insurance companies, and large firms, expanding to smaller firms over time based on turnover thresholds (500M, 350M, then 200M dirhams).
• Entities must withhold 75% of VAT if the service provider shows tax compliance; otherwise, 100% is withheld.
• The reform aims to improve VAT collection, reduce evasion, and secure public revenues, allowing businesses time to adapt.

Source: msn.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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