VAT: Formalities to be completed before August 31
Whether supplier or customer, all taxpayers liable for value-added tax (VAT) are required to complete new formalities for the first time before August 31. The new VAT withholding tax system has been in force since July 1. In accordance with the provisions of Articles 117-IV and V and 112-II of the General Tax Code (CGI), as supplemented by the 2024 Finance Bill, this provision is accompanied by new administrative formalities to be carried out online by both customers and suppliers. It should be noted that a taxpayer can be both a supplier and a customer. As a result, they are doubly concerned. Here’s a summary of the compulsory formalities that make many taxpayers dizzy.
■ Formalities for the “acquiring” customer
It goes without saying that the amount of VAT deducted at source by the customer must be paid to the tax authorities in the month following each payment. This applies to amounts collected from July 1 to the end of the same month. In addition, each payment must be accompanied by a notification slip (form RSC 100) in accordance with the model drawn up by the General Tax Directorate (DGI), as for the provisions applicable to all withholding taxes such as the Income tax on salaries. The payment slip in question consists of two parts. The payment slip in question consists of two parts, one of which is intended to reveal the identity of all suppliers, invoice by invoice, who have been subject to withholding tax by the customer at the rate of 75% or 100% of the amount of VAT invoiced. It should be noted that the sums withheld by government departments and public accountants are then paid to the public accountants reporting to the Kingdom’s General Treasury (TGR).
■ Formalities for “vendor” suppliers
Depending on the type of VAT return (quarterly or monthly), suppliers whose sales are subject to withholding tax are required to attach to their VAT return a detailed statement of the withholding tax deducted by their customers, in accordance with a model drawn up by the tax authorities in order to reveal the identity of their customers who have made the said deduction, as is the case for deductions.
Suppliers subject to VAT under the monthly declaration system are therefore required to summarize all withholdings made by their customers during the month of July in respect of the tax.
This new formality must be completed by the end of August for sales transactions subject to withholding tax during the month of July. In fact, this procedure itself was in force before July 1, 2024, but this time, the sales return includes two new features: “It must show the total amount of VAT due before deduction of the withholding tax on line 130. The taxpayer will have to fill in the two new lines inserted in the new sales form ”, pointed out Mohamed Chorfi, who at the same time advises “ not to forget the consistency and control formulas ”.
Line 131 corresponds to the amount of withholding tax paid by customers (article 117-IV and V of the CGI), while line 132 represents the amount of VAT due.
Hassan EL ARIF
