Morocco Introduces 10% VAT on Cafes and Cultural Venues

This note was sent to the various regional DGI directorates across the national territory, reports LesEco.ma. The tax officials thus have a detailed practical work guide outlining the various tax provisions included in the 2020 budget and finance law.

As part of "the consecration of the principles of equity and good rules of competition", café operators will pay a new tax on the services provided, indicates the latest circular note of the finance law. As of January 1, 2020, services provided by restaurants are exempt. As for the reduced rate of 10%, it applies to sales transactions.

Furthermore, sales transactions on admission tickets to museums, cinemas and theaters are subject to a 10% VAT, replacing the 20% rate. Similarly, the 2020 Finance Act has amended the provisions of Article 99-2, in order to apply the 10% rate on services from this sector, it concludes.