Airbnb Evades Moroccan Tax Laws Despite Regulations

The collection of VAT on Airbnb services in Morocco proves to be difficult. Regulations, administrative circulars have been of no use. The world’s largest hotel chain without hotels escapes Moroccan taxation. However, Article 115 of the General Tax Code stipulates that any person who does not have an establishment in Morocco and carries out taxable transactions there must have a local representative accredited with the tax administration. It is therefore up to the latter to pay the VAT due. But the implementation of these provisions is hampered by difficulties related to the management of tax files, both for their non-resident foreign suppliers and for Moroccan customers," says the daily Les Inspirations Éco.

In order to overcome these difficulties, Article 115 of the CGI has been amended. Henceforth, the Moroccan customer is considered to be the legal debtor of the VAT. This is the self-assessment system. It aims to simplify and lighten the tax obligations incumbent on economic operators. Moroccan customers are now required to declare, according to their tax regime, the tax due by the non-resident person simultaneously with the turnover of the month or quarter following the one of the payment and to deduct the VAT." Only the application of the law will allow the Moroccan tax authorities to control Airbnb.