In business relationships, the tax compliance of partners is an often underestimated yet crucial factor. In Morocco, the certificate of tax compliance issued by the Directorate General of Taxes (DGI) is not just a document for companies to use for their own purposes. It is also essential for relations with suppliers, as it ensures the legal and tax security of all parties involved.
Requesting this document from your suppliers firstly ensures their compliance with the tax administration. A supplier that is not in good standing can expose its partners to indirect risks, particularly in the event of a tax audit or litigation. By having the certificate, the client company ensures that the invoices received come from a supplier in a regular situation, thus reducing the risks of later contesting the deductibility of VAT or charges incurred, in particular thanks to a rigorous management of tax declarations.
The risk is now reinforced by recent developments in tax practice in Morocco. In the event of an audit, the administration may reject the deductibility of a charge if the supplier proves to be defaulting and the client company has not requested its tax regularity certificate. In other words, even if the service is real, the client's lack of vigilance can result in a costly tax adjustment, with reinstatement of charges and tax reminders, hence the importance of a specialized assistance during a tax audit.
Vigilance is all the more important since Moroccan legislation has strengthened control and tax transparency mechanisms. The risk of seeing VAT withholding taxes wrongly charged or poorly justified is very real. By requiring a certificate of tax regularity, the client company protects itself against tax adjustments which could be linked not to its own management, but to the irregularity of a partner, which underlines the interest of a audit and reliability of internal control.
Beyond compliance, this approach strengthens the relationship of trust between business partners. A company that agrees to provide its certificate demonstrates its seriousness, rigor and transparency. It is also a selection criterion when choosing suppliers, particularly for large companies and public institutions, which systematically require this document in calls for tender.
As far as the deadline is concerned, we recommend requesting this certificate every six months. This frequency ensures that the supplier is in good standing on an ongoing basis, and not just at the end of the fiscal year. In the case of multi-year contracts or strategic partnerships, this half-yearly control becomes a genuine risk prevention tool, guaranteeing the regularity of your partners throughout the business relationship.
In practice, requiring this certification should not be seen as a constraint but as a mutually beneficial precaution. It protects the customer against tax risks and gives credibility to the supplier by certifying its regularity. In an economic environment where compliance is increasingly monitored, it is an approach that stands out as good practice, supported by regular accounting review to ensure the consistency and reliability of financial information.
At Auditia, we advise our customers on how best to integrate this requirement into their internal procedures, whether when selecting suppliers, signing contracts or periodically monitoring business relations.
Would you like to secure your relations with your suppliers and avoid the risk of having your tax charges rejected? Contact Auditia today to set up appropriate procedures and protect your business with complete peace of mind.
