VAT calculator for Morocco: from net (HT) to gross (TTC) and back

Which formulas does the VAT calculator use?

VAT is always calculated on the net base, the amount excluding VAT. From a net amount, the tool multiplies by the rate and adds the VAT; from a gross amount, it divides by the coefficient 1 + rate, and the VAT included is the difference.

Lines are grouped by rate and VAT is rounded to the centime once per rate, as in an invoice's VAT summary. From a gross amount, the net base is rounded and VAT is the remainder, so the gross amount entered is kept exactly. The rates are those applied by the tool at its last update and change with the finance laws.

• VAT = net × rate
• Gross = net × (1 + rate)
• Net = gross ÷ (1 + rate)
• VAT included = gross − net = gross × rate ÷ (1 + rate)
• Coefficients: 1.20 at 20 %, 1.14 at 14 %, 1.10 at 10 % and 1.07 at 7 %

Worked example: an invoice with three VAT rates

Take an invoice entered net, with three lines: 12,450.00 MAD (DH) at 20 %, 3,200.00 MAD at 10 % and 1,875.50 MAD at 7 %. At 7 %, the exact VAT of 131.285 MAD is rounded to 131.29 MAD. The invoice totals 17,525.50 MAD net, 2,941.29 MAD of VAT and 20,466.79 MAD gross, broken down by rate in the table below.

How do you work out the net amount and VAT from a gross price?

This is the calculation most often done wrong. For 1,000.00 MAD (DH) including VAT at 20 %, the net amount is not 800.00 MAD but 1,000.00 ÷ 1.20 = 833.33 MAD, with 166.67 MAD of VAT included. Taking 20 % off the gross amount calculates VAT on an amount that already contains it.

For the same 1,000.00 MAD gross, the other rates give:

• at 14 %: net 877.19 MAD, VAT 122.81 MAD;
• at 10 %: net 909.09 MAD, VAT 90.91 MAD;
• at 7 %: net 934.58 MAD, VAT 65.42 MAD.

What are the most common VAT calculation mistakes?

Most gaps between an invoice and the VAT return come from a few simple errors:

• Deducting 20 % from a gross amount: 1,000.00 MAD gross then becomes 800.00 MAD instead of 833.33 MAD net.
• Rounding every line and adding up the rounded figures: on a long invoice the centimes pile up and the total drifts from the VAT computed per rate.
• Picking a reduced rate without checking: reduced rates cover goods and services listed in the General Tax Code, and those lists change with the finance laws.
• Confusing exempt with outside the scope of VAT: both are invoiced without VAT, but the consequences differ, especially for the right to deduct.
• Leaving out the VAT breakdown by rate on the invoice: show the net base and VAT for each rate, so your customer can support their deduction and you can reconcile your return.

What SOGESTIO automates on your invoices and VAT return

The calculator suits a one-off amount. In SOGESTIO, the net, VAT and gross totals of every quote, invoice or credit note are computed by the server, with VAT calculated line by line and totalled by rate. Rates are configurable per company and pre-filled with 20 %, 14 %, 10 %, 7 % and exempt (0 %).

The VAT return is prepared on the cash basis (encaissement, the default regime) or the accrual basis (débits), with output VAT, input VAT and credit carried forward, and the statement of deductions is exported in EDI XML format for SIMPL-TVA. SOGESTIO prepares and automates; the return is still validated by the business or its accountant.

An indicative result, to confirm with your accountant

The calculator does arithmetic only: it does not tell you which rate applies to your transaction or when VAT becomes payable. Its rates change with the finance laws and official circulars, so have the rate and treatment confirmed by your expert-comptable (chartered accountant) before invoicing or filing.