Late payment weighs heavily on SMEs’ cash flow. To address it, Law No. 69-21, which amends the Commercial Code, tightened the rules on payment terms between businesses and gave the tax authority the task of checking them.
Applicable terms
| Situation | Term |
|---|---|
| No term agreed between the parties | 60 days from the invoice date |
| Term agreed by contract | 120 days at most from the invoice date |
| Specific or seasonal sectors | Up to 180 days, only if a decree provides for it after an opinion of the Competition Council |
The starting point: the invoice
The term runs from the invoice issue date. To prevent late invoicing, the law requires invoicing no later than the end of the month of delivery or service; failing that, the term runs from that date.
For recurring transactions within the same month, the term may run from the first day of the following month.
Which businesses are concerned?
The rules were phased in by turnover excluding tax:
| Turnover | Since |
|---|---|
| Over MAD 50 million | 1 July 2023 |
| MAD 10 to 50 million | 1 January 2024 |
| MAD 2 to 10 million | 1 January 2025 |
In 2026, all businesses with turnover above MAD 2 million are therefore concerned.
The quarterly return
Each business concerned must file, electronically with the Tax Directorate (DGI), a quarterly payment terms return, before the end of the month following each quarter.
Important points:
- the return is due even if no invoice was paid late;
- it lists invoices paid late and invoices still unpaid after the term;
- it must be certified by a statutory auditor for businesses with turnover of at least MAD 50 million, and by an authorised professional for the others.
Penalties
Failing to respect payment terms exposes the debtor business to a financial penalty, calculated on the invoice amount and the length of the delay. It is declared and paid by the late payer and collected by the tax authority.
Failing to file the return, or filing an inaccurate one, is itself penalised.
What it changes in practice
- Review terms and conditions and supplier and customer contracts to respect the 120-day cap.
- Invoice promptly, at the latest at the end of each month.
- Track due dates invoice by invoice, for suppliers and customers.
- Prepare the quarterly return from the accounts, which requires reliable invoice and payment dates.
Ascensu builds payment-term tracking and the quarterly returns into its clients’ bookkeeping.
Official sources
This article is provided for general information, as at its publication date. It is not personalised advice: the rules change and every situation must be reviewed on its own facts.