The Administration of Value Added Tax in Africa: The Case of Morocco

Value Added Tax (VAT) requires a highly experienced, efficient, and absolutely integrous tax administration capable of handling complex operations: determining the tax base, assessing taxable amounts, liquidation, and meticulous examination of business accounts. However, African tax administrations often prefer simple, easy-to-apply procedures. In countries like Morocco, applying VAT to numerous small taxpayers—including a high percentage of retailers and service enterprises—poses significant challenges. Collection involves costly formalities that can sharply increase collection costs, a particular burden where only a small budget share is allocated to tax services. The author examines these administrative constraints that complicate effective VAT implementation in developing African countries.