Morocco legislates its 2024–2026 VAT rate convergence to two rates, 20% and 10%

What changed in detail

Finance Law n° 55-23 for 2024 was promulgated by Dahir n° 1-23-91 of 14 December 2023 and published in Bulletin Officiel n° 7259 bis (official French translation) on 25 December 2023. It recasts General Tax Code (CGI) art. 99 so that it provides two TVA rates, 20% and 10%. It then sets the whole transition to that structure in one transitional provision, art. 247-XXXXI:

• A: 10% on water for public distribution networks, sanitation services and water-meter rental from 1 January 2024.
• B: electricity rises from 14% to 16% (2024), 18% (2025) and 20% (2026).
• C: electricity-meter rental rises from 7% to 11%, 15% and 20%.
• D: sales by producers of renewable electricity fall from 14% to 12% (2024) and 10% (2025).
• E: refined or agglomerated sugar rises from 7% to 8%, 9% and 10%.
• F: passenger and goods transport other than urban transport and road transport rises from 14% to 16%, 18% and 20%.
• G: urban transport and road passenger and goods transport fall from 14% to 13%, 12% and 10%.
• H: services of insurance agents and brokers fall from 14% to 12% (2024) and 10% (2025).

Each step takes effect on 1 January of the year stated. Article IV-9 of the law adds that the electricity rate changes do not alter regulated electricity tariffs.

What it means

The whole schedule came from this one law. The Finance Laws for 2025 (LF 60-24) and 2026 (LF 50-25) did not re-enact the steps. The 2025 and 2026 increases and decreases took effect automatically under art. 247-XXXXI. With the 1 January 2026 step, the schedule is complete. As of November 2026, Morocco’s TVA runs at 20% and 10%, the 7% and 14% rates no longer apply to these supplies, and the transitional provision is spent.

Rates on some transport moved down while others moved up. Classifying a service under F (other transport) or G (urban and road transport) is the point that most needs checking.