As famous as Moroccan commerce is, Morocco its usually not the first option you would think of when trying to generate business within the European Union, mainly because, of course, it is not technically part of the bloc. However, it would be a mistake not to consider it as such when doing business, since together with Jordan, Tunisia and Egypt, they create a sub-block of North African countries with close trade relations with Europe.
This makes it a key ally, since while the whole planet is trying to penetrate the English, French or Dutch economies, they forget about the possibility that the Moroccan economy is the spearhead to enter the continent’s market.
And best of all, the Moroccan merchants will welcome you with their arms raised. After all, trade was for centuries the way of survival of their culture. Therefore, while in some parts of Europe business can be intertwined with bureaucratic or protocol issues. In Morocco, on the other hand, trade is something that runs in the blood, so whenever you talk to a Moroccan trader, you can be sure that both will speak the same language.
But of course, if it was that easy everyone would have done it by now. Before you can do business with moroccan owners, there are a few things you need to know. The first thing is the particular operation that the VAT (Value Added Tax) has in the country.
Moroccan VAT
The VAT number is an identification number that enables companies to operate in Europe. If you need to invoice other member countries, you are obliged to request it and be registered with it, and it implies a reduction in the tax burden for both parties.
Although there are lesser rates up to 7%, 10%, and 14% that apply to certain businesses, the usual rate of VAT is 20%. If the items are delivered in Morocco, the sale is regarded as having occurred there and is so liable to VAT.
If the purchased services are utilized or consumed in Morocco, the sale of such services is deemed to have occurred there and is therefore liable to VAT. There are two different kinds of VAT exemptions offered. The first is an exemption with credit, which is the same as the idea of paying no taxes. An exemption without credit is the second option.
Businesses in Morocco that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance, and will follow a certain format. The VAT number format is 12345678.
How to check Moroccan VAT numbers
Using the VAT number check API, you may validate VAT numbers, retrieve all or a specific EU VAT rate depending on your IP address or country code, change prices to comply with EU VAT rates and sorts, and more.
Using this VAT Validation API, you may batch-validate the client business data of your Moroccan clients. When a consumer opts to enter their VAT number during the checkout process, the API will decide which government agency it will submit the request to automatically.
The VAT number check API will then inform you of the accuracy or otherwise of the entered number. If so, you will receive a report that, based on commercial data, includes details about the nation to which the number belongs, the name of the company, and its address.
By following this process, you can be sure that you always have your clients’ complete, correct, and most important, current VAT numbers. You may quickly check for missing or inaccurate VAT numbers and, if necessary, get rid of them from your system by logging in and running an API query. The highest level of interoperability with all of your applications, systems, programming languages, and frameworks is guaranteed by the use of simple and understandable URL