VAT EXEMPTION ON CAPITAL GOODS FOR NEWLY ESTABLISHED COMPANIES

10/02/2020

Newly established companies can be exempted of paying due VAT on the capital goods imported or purchased inside Morocco during a period of thirty six (36) months from the beginning of their activity.

The beginning of activity refers to the date of the first commercial act which coincides with the first acquisition of goods and services, excluding:

• costs involved by setting up the company,
• initial costs necessary for the company’s installation incurred within a limited period of 3 months.

For companies building their investment projects, the thirty six (36) months period begins to run from the date of issuance of the building permit.

To qualify for this exemption, the conditions below should be met:

• the acquired assets must be eligible for deduction and registered in fixed assets accounts,
• the company should respect the procedure put in place by the Moroccan tax code.