Filing a VAT return on SIMPL-TVA in Morocco: the steps, from the statement of deductions to payment

Who files VAT on SIMPL-TVA, and how often?

Every business liable to VAT, by law or by option, files online on SIMPL-TVA, the DGI's e-filing and e-payment service. The return, the statement of deductions and the payment all go through this channel, whether the business files itself or through its accountant.

Filing frequency depends on the previous year's taxable turnover. At the time of writing the threshold is 1,000,000 DH: from that amount the return is monthly; below it, quarterly. New taxpayers in principle file quarterly during their first calendar year. Filing and payment are in principle due before the end of the month following the period. Thresholds and deadlines change with the finance laws, so check your situation with your expert-comptable (chartered accountant).

What are the steps of a VAT return?

A reliable return is prepared before you open the portal. The table below details each check; here is the sequence.

• Close the period: every sales invoice and credit note is validated, with no gap in the numbering.
• Settle output VAT: on the cash basis, customer payments received in the period, advances included; on the accrual basis, invoices and credit notes issued, plus advances received before invoicing.
• Gather the supplier invoices paid in full or in part, with the date and method of each payment.
• Calculate: output VAT, minus input VAT, minus the credit carried forward from the previous period.
• Prepare the statement of deductions in EDI format; its total must equal the input VAT declared.
• File, pay the balance due, then keep the filing receipt and proof of payment with the period's documents.

What does the EDI statement of deductions contain?

The statement of deductions (relevé des déductions) lists, invoice by invoice, the VAT you deduct. It accompanies the return as a structured file in EDI (electronic data interchange) format, which avoids re-keying every line. Based on the template in use at the time of writing, each line shows in particular the invoice number and description, the amounts excluding VAT, VAT and including VAT, the supplier's identity (name, tax identifier and ICE number), the rate, the deduction ratio, the payment method, the payment date and the invoice date.

Two issues cause most rejections. First, the supplier's ICE number: the DGI has announced that statements without the suppliers' ICE numbers are not accepted by the system. Second, consistency: the statement's total must match the input VAT declared, and each payment must fall before the end of the period and within the deduction time limit.

Worked example: one quarter with VAT to pay, then a quarter in credit

A quarterly SME on the cash basis prepares its second-quarter return (April to June), to be filed and paid before the end of July, using the rates in force at the time of writing. Its statement of deductions will have three lines, one per supplier invoice paid, totalling exactly the input VAT.

• Customer receipts at 20 %: 45,600.00 DH including VAT, i.e. 38,000.00 DH excluding VAT and 7,600.00 DH of VAT.
• Customer receipts at 10 %: 9,350.00 DH including VAT, i.e. 8,500.00 DH excluding VAT and 850.00 DH of VAT. Output VAT: 8,450.00 DH.
• Supplier invoices paid: 21,450.00 DH excluding VAT at 20 % (VAT 4,290.00 DH), 3,200.00 DH at 20 % (VAT 640.00 DH) and 1,850.00 DH at 10 % (VAT 185.00 DH). Input VAT: 5,115.00 DH.
• VAT due for the second quarter: 8,450.00 − 5,115.00 = 3,335.00 DH.
• Third quarter: 3,200.00 DH of output VAT (3,000.00 DH at 20 % on 15,000.00 DH, 200.00 DH at 10 % on 2,000.00 DH) against 5,100.00 DH of input VAT, including 4,800.00 DH on a machine costing 24,000.00 DH excluding VAT. Nothing to pay, and a 1,900.00 DH credit carried forward.
• Fourth quarter: 4,100.00 DH of output VAT minus 1,250.00 DH of input VAT, i.e. 2,850.00 DH, minus the 1,900.00 DH credit: 950.00 DH left to pay.

Nil return, VAT credit, corrections: how do you handle special cases?

A VAT-registered business files its return even with no transaction in the period: this is the nil return (déclaration néant). Forgetting it exposes you to the penalties for failing to file or filing late. When the period only has paid purchases, the return shows a credit.

A VAT credit is carried forward to the next period, then the following ones until it is used up; a refund is only available in cases set by law, such as certain export or investment operations. Remember to bring forward the credit from the previous return: forgetting it means overpaying.

An error found after filing is handled according to its nature: a purchase invoice paid but forgotten can in principle be deducted in a later period, within the one-year limit; an omitted sale calls for an adjustment, possibly with surcharges. Get help from your accountant.

Which mistakes get a return rejected or corrected?

Most anomalies come from purchase documents and dates, rarely from the calculation itself.

• Supplier's ICE or IF number missing or wrong in the statement of deductions.
• Invoice date entered instead of payment date, which puts the deduction in the wrong period.
• Wrong rate applied, especially after a finance law changes a reduced rate.
• Rounding done on the total instead of each line, causing differences of a few centimes between invoices, statement and return.
• VAT deducted on an unpaid invoice, or on one paid in cash beyond the permitted caps.
• Supplier credit notes forgotten, although they reduce input VAT.
• Previous credit not carried forward, or nil return not filed.

How does SOGESTIO prepare your VAT return?

SOGESTIO calculates VAT line by line and totals it by rate on every invoice and credit note, and records expenses with their deductible VAT. From the invoices and payments recorded, it prepares the return on the cash or accrual basis, with output VAT, input VAT and the credit carried forward from one period to the next. The statement of deductions is exported in EDI XML format for SIMPL-TVA.

Entries for every invoice, payment and purchase are generated automatically on the Moroccan CGNC chart of accounts by the accounting module of the Pro (449 DH excl. VAT/month) and Groupe (990 DH excl. VAT/month) plans. SOGESTIO does not file the return for you: it prepares the data, and the business or its accountant validates and files it. You can try it free for 14 days, no card required.