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    The document discusses the VAT base and how it is calculated, including reductions, majorations, and discounts that are applied. It also covers when VAT becomes due, known as exigibility, under the collection/receipt and debit regimes in Morocco. The periodic declaration and payment of VAT in Morocco is also summarized, including monthly and quarterly declaration requirements.

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    The document discusses the VAT base and how it is calculated, including reductions, majorations, and discounts that are applied. It also covers when VAT becomes due, known as exigibility, under the collection/receipt and debit regimes in Morocco. The periodic declaration and payment of VAT in Morocco is also summarized, including monthly and quarterly declaration requirements.

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    11 views19 pages

    Session 5

    Uploaded by

    youssef.oubenali
    The document discusses the VAT base and how it is calculated, including reductions, majorations, and discounts that are applied. It also covers when VAT becomes due, known as exigibility, under the collection/receipt and debit regimes in Morocco. The periodic declaration and payment of VAT in Morocco is also summarized, including monthly and quarterly declaration requirements.

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    of 19

    General Taxation

    Session 5

    NAIT BOUZID Khalil


    ISIAM-2024
    VAT Base
    Gross Amount HT
    Reductions (-) Majorations (+)
    • Reduction
    • Rebate • Transport expenses
    • Refund • Installation expenses
    • Lost packaging
    Financial discount • Inventory expenses
    • Interest for forward settlement
    • Advances TTC • Commissions and brokerage
    • Trade-in TTC

    Note:
    1- Transport is provided by a supplier by his own means of transport
    2- Transport is provided by a third party
    Gross Amount HT 25 000 Transport(1/3) 200
    Reduction 4% 1 000 VAT 14% 28
    Commercial Net 24 000 TTC 228
    Financial discocunt 2% 480
    Gross Amount HT 30 000
    Financial Net 23 520
    Reduction 5% 1 500
    Own trspt HT 400
    Commercial Net 28 500
    Amount HT ( base) 23 920
    Financial discocunt 2% 570
    VAT 20% 4 784
    Financial Net (base) 27 930
    Net TTC 28 704
    VAT 20% 5 586
    TTC TRSP 1/3 228 to add
    Net TTC 5 814
    The Exigbility of VAT

    • The generating event in VAT (Value Added Tax) refers to the


    moment when the tax becomes due.

    • The moment when a business or an individual is legally


    obligated to pay the tax to the tax authorities
    VAT regimes in Morocco

    The collection/Receipt regime: According to this regime, the


    chargeable/generating event is the total or partial collection of
    the amounts, without considering the date of the invoice or the
    date of supply of goods and services.
    The chargeable event: The cashing of the cheque.
    Bank transfer: The entry in the supplier's account.
    The debit regime: The chargeable event in this regime is the
    entry of the amount in the debit of an account.
    In practice, the VAT becomes due from the moment the
    customer's account is debited with the amount due, either
    because of the delivery of the products or the rendering of the
    service.
    Acknowledgement of the Sale.
    Example
    On September 15, 2023, the invoice issued by company (x) to its customer includes the following:
    1. Determine the taxable base of the VAT.
    2. Specify the due date of the VAT knowing that the net amount to be paid will be on 25/10/2023:
    receipts regime / debit regime.

    Elements Amount
    Gross amount 500 000
    Reduction 1%
    Own transportation 4 200
    Packaging costs 10 000
    Assembly costs 26 000
    Advance TTC on 25 August 2023 66 000
    Gross Amount HT 500 000
    Reduction 1% 5 000
    Commercial Net 495 000
    Solution Own Trsprt cost 4 200
    Packagin cost 10 000
    Assembly cost 26 000
    Sale price HT ( base) 535 200
    VAT 20% 107 040
    TTC 642 240
    -Advances TTC 66 000
    Net TTC 576 240
    Collection regime
    VAT/ Advances 66 000/6 only correct if using 20% as VAT rate or (66 000/1,2)*0,2 = 11 000
    Due for the month of August 2023.
    To be paid before the end of September 2023.
    VAT/ due 576 240/6= 96 040
    Due for the month of October 2023
    To be paid before the end of November 2023
    Debit regime
    VAT/ Advances 11 000
    Due for the month of august 2023.
    To be paid before the end of September 2023.
    VAT/ due 96 040
    Due in the month of invoice ( sept)
    To be paid before the end of October 2023
    VAT Declaration
    The VAT to be paid
    The VAT payable by a company is calculated as the difference between
    the invoiced VAT and the invoiced and the recoverable VAT.
    VAT payable (due) = Invoiced VAT - (Recoverable VAT) - VAT credit

    The recoverable VAT: represents the amount of VAT on the company’s


    buy invoices. A distinction is generally made between recoverable VAT
    on goods and services and recoverable VAT on the acquisition of fixed
    assets.

    Invoiced VAT: Invoiced VAT represents the amount of VAT invoiced to


    customers, which is collected on behalf of the State.
    Periodicity of the VAT
    Monthly Declaration
    The following are obligatorily taxed under the monthly declaration
    regime:
    • Taxpayers whose taxable turnover (HT) realized during the past year
    reached or exceeded one million (1 000 000) dirhams;

    • Any person not having an establishment in Morocco and carrying out


    taxable operations in Morocco.

    The VAT declaration of month M is payable (before the end of month


    M+1)
    Quarterly declaration:

    The following are taxed under the quarterly declaration regime:


    • Taxpayers whose taxable turnover during the past year is less than one
    million (1 000 000) dirhams;

    • Taxpayers operating seasonal establishments, as well as those carrying out a


    periodic activity or performing occasional operations;

    • New taxpayers for the period of the current calendar year.

    The VAT declaration of the quarter Q is payable (before the end of the month
    following the quarter Q (article 155).
    Quartely Declaration (Receipt regime)
    A company (x) placed under the regime of the quarterly declaration, sells products subject to the 20% rate.
    During the second quarter of 2023, it received the following monthly sales (excluding VAT).
    – April: 100 000 MAD
    – Mai: 70 000 MAD
    – June: 130 000 MAD
    In order to realize these sales, (X) paid by cheque the following fees:
    April May Juin July
    Purchases Rate
    Goods 20% 80 000 70 000 90 000 60 000
    Off. equip 20% 6 000 3 000 4 000 0
    Machine 20% 0 30 000 30 000 20 000
    Fees Rate
    Fin.fees 10% 2 000 0 2 500 3 000
    Trspt (1/3) 14% 3 000 2 800 2 500 3 500
    Water 7% 2 500 2 000 2 200 2 600
    Phone 20% 5 500 7 000 6 000 6 500

    To do: Present quartely VAT declaration of the company (x)


    Elements April May Juin Total
    Invoiced VAT 20 000 14 000 26 000 60 000

    Recoverable VAT 68 471


    Goods 16 000 14 000 18 000 48 000
    Off. equip 1 200 600 800 2 600
    Machine 0 6 000 6 000 12 000
    Fin. fees 200 0 250 450
    Trspt (1/3) 420 392 440 1 252
    Water 175 140 154 469
    Phone 1 100 1 400 1 200 3 700
    VAT DUE

    VAT CREDIT 8 471


    Operations are subject to VAT: 20%
    Operations (HT) APRIL MAY JUNE
    Sales of goods 620 000 880 000 640 000
    Purchases of goods 540 000 410 000 380 000
    Other expenses 60 000 50 000 55 000
    Acquisition of Fixed Assets 220 000 94 000 106 000
    VAT Credit for the month March 2023 is: 3 000 MAD
    To do:
    – Find VAT due for APRIL, MAY, JUNE 2023 (Monthly).
    – Find VAT due on the second Quarter 2023 (Quartely).
    Monthly
    Elements April May Juin
    VAT invoiced 124 000 176 000 128 000
    Recoverable VAT (fix. Asset) 108 000 82 000 76 000
    Recoverable VAT (goods) 12 000 10 000 11 000
    Recoverable VAT 44 000 18 800 21 200
    (expenses)
    Retained credit VAT 3 000 43 000
    VAT due 22 200 19 800
    VAT credit 43 000
    Elements Total
    VAT invoiced 428 000
    Recoverable VAT (fix. Asset) 266 000
    Recoverable VAT (goods) 33 000
    Recoverable VAT (expenses) 84 000
    Retained credit VAT 3 000
    VAT due 42 000
    VAT credit
    Review Exercises

    Work in pairs

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