Payment terms in Morocco: Law No. 69.21
Law no. 69-21 concerning payment terms was officially announced in the Arabic-language Bulletin Officiel on June 15, 2023. This law applies to all private companies, public service delegates and public establishments that regularly carry out commercial transactions. However, legal entities and individuals with sales of less than DH2 million excluding tax are excluded from the application of this law.
Transitional measures: Staggered schedule based on sales excluding VAT.
Penalties for late payment: the current key rate (3% for fiscal year 2023) + 0.85% for each month or fraction of a month overdue.
As far as fines are concerned, the law stipulates that offenders are liable to a fine equivalent to Bank Al-Maghrib’s key rate, currently set at 3%. In addition, this fine is increased by 0.85% for each month or fraction of a month of delay, to discourage late compliance. The fine does not apply to invoices issued before January 1, 2025 for amounts less than or equal to ≤ 10,000 dirhams including tax.
Payment terms between business partners
Payment terms are defined as follows:
In the absence of an agreement between the parties, the payment term is set at 60 days from the invoice date.
When a payment term is agreed between the parties, it may not exceed 120 days from the invoice date.
In exceptional cases, a maximum term of 180 days may be set by decree for professionals operating in specific or seasonal sectors.
If the invoice has not been issued within the aforementioned period, the payment period is calculated from the end of the month in which the goods, work or services are delivered.
What about tax returns?
Companies with sales in excess of DH2 million excluding VAT must submit a quarterly tax return, even if no invoices are paid on time.
The declaration must be made by the end of the month following the end of the quarter, and include information such as company identification, the period covered by the declaration, sales excluding VAT, the total amount (including VAT) of invoices not paid on time, the total amount of invoices paid on time, and the amount of any fines.
Companies with sales of more than DH50 million excluding VAT must provide a certificate from an auditor, while those with sales of less than DH50 million excluding VAT must be accompanied by a certificate from a chartered accountant or certified accountant.
Penalties relating to declarations and payment of fines :
- Sales between 2 MDH and 10 MDH: Five thousand (5,000) dirhams.
- Sales between 10 MDH and 50 MDH: Twelve thousand five hundred (12,500) dirhams.
- Sales between 50 MDH and 200 MDH: Fifty thousand (50,000) dirhams.
- CA 200 MDH and 500 MDH: One hundred and twenty-five thousand (125,000) dirhams
- Sales > 500 MDH : Two hundred and fifty thousand (250,000) dirhams
Where the declaration is incomplete or insufficient, a fine of five thousand (5,000) dirhams is applied for each missing or inconsistent invoice.