How the tax authorities in Morocco are tightening their grip on fraud

As of January 1st, car transactions will be more tax-locked in Morocco from a tax point of view. One new provision has almost gone unnoticed in the recently approved Finance Act and concerns the annual special tax on vehicles (TSAV), commonly known as the “vignette”. For this tax, therefore, which must be paid by January 31st at the latest, any commercial transaction on a vehicle may be blocked if the former owner of the said car has accumulated sticker unpaid amounts for previous years. This clause concerns in particular second-hand vehicles. Its purpose is to make the transfer of vehicles more transparent and to allow the tax authorities to recover unpaid debts that were previously unpaid. 

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The TSAV is, in fact, set at $39 (350 DH) for vehicles with a fiscal power less than 8 horsepower 

In accordance with this new measure, article 263 of the General Tax Code (CGI) will stipulate as follows: “no transfer of a vehicle liable to the special annual tax on vehicles may be made in the name of the transferee, if it is not justified, beforehand, the payment of the tax relating to the current taxation year and to years not prescribed or the exemption from this tax”. As regards the rate of the vignette for vehicles with a total laden weight or maximum towed weight of less than or equal to 3,000 kilos, as well as four-wheel-drive vehicles (4×4) not intended for professional use, whatever their weight, they remain the same.

The TSAV is, in fact, set at $39 (350 DH) for vehicles with a fiscal power less than 8 horsepower (HP), $72.5 (650 DH) (from 8 to 10 HP), $334 (3,000 DH) (from 11 to 14 HP) and $892.7 (8,000 DH) (equal or superior to 15 HP). As for diesel vehicles, they are subject to a tariff of $78 (700 MAD) (fiscal power less than 8 HP), $167 (1,500 MAD) (from 8 to 10 HP), $670 (6,000 MAD) (from 11 to 14 HP) and $223 (20,000 MAD) (equal or superior to 15 HP). 

For the rates of penalties and increases, no modification will take place during the next year. Thus, according to the CGI, the late payment of the TSAV entails a 10% penalty and a 5% increase for the first month of delay and 0.5% per month or fraction of additional month on the amount, with a minimum of $11.2 (MAD 100). Moreover, the General Tax Code also stipulates that when the delay, whatever its duration, is noted by a report, the penalty is 100% of the amount of the tax or the fraction of the tax due, without prejudice to the impoundment of the vehicle. 

With regard to the methods of payment of the vignette, it is worth recalling that the General Tax Department (DGI) has expanded its network (banks, payment service providers, etc.), with a very dynamic digitalization that has allowed proximity, simplicity, availability, cost reduction, improved collection, in addition to better control. It should also be noted that the 2021 Finance Law provides for revenues of more than $324,730 (2.91MMDH) from the TSAV, the main and duplicate tax.

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(Featured image by Free-Photos via Pixabay)

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First published in LesEco.ma, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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