RABAT, Sept 1 – Apple has applied Morocco’s 20% value-added tax (VAT) to developer proceeds from eligible apps and In-App Purchases, following the country’s new tax rules for digital services supplied by foreign companies.
The change was announced in an Apple Developer update published on August 27, titled “Tax and price updates for apps, In-App Purchases, and subscriptions.”
Apple also adjusted developer proceeds in the Republic of the Congo, where an 18% VAT has been introduced, and Tanzania, where the digital sales tax has increased from 2% to 3%.
The company said it will also update Exhibit B of its Paid Applications Agreement to reflect that Apple collects and pays applicable taxes in Morocco and the Republic of the Congo.
From September 14, Apple will revise prices for apps and In-App Purchases in Israel, Indonesia, Morocco and the Republic of the Congo for developers who have not selected any of those countries as their base storefront.
For developers using one of these countries as their base storefront, local prices will remain unchanged, while prices in other storefronts will be adjusted to maintain equalization. Auto-renewable subscriptions are excluded from the changes, as are storefronts where developers set prices manually.
Apple’s move follows similar action by OpenAI, which began adding applicable taxes to Moroccan invoices from August 1. The company had informed users in July that the charges would reflect local tax requirements.
Under the new system, individual subscribers are responsible for the 20% VAT, while VAT-registered businesses can provide a valid tax identification number to avoid being charged the tax directly.
The changes are linked to Morocco’s 2024 Finance Law, which extended VAT to remote digital services provided by foreign companies without a physical presence in the country. The system became operational on June 11 through a dedicated service on the General Tax Directorate’s SIMPL portal.
Non-resident digital service providers must register, report their Moroccan revenue quarterly and pay the applicable VAT. They are also required to keep records of Moroccan transactions for 10 years.
The rules cover a wide range of digital services, including streaming platforms, social networks, software, cloud computing, digital advertising and artificial intelligence services such as ChatGPT and Claude.
While the tax obligation falls on providers, companies can decide whether to absorb the additional cost or pass it on to customers. Most are expected to increase prices. A ChatGPT Plus subscription priced at MAD 200 ($20) a month, for example, would rise to about MAD 240 ($24) with the 20% VAT.
