Disposing of a fixed asset in Morocco: invoice, entry and result

You sell a van for 40,000 dirhams: that is not a 40,000-dirham gain. The result on disposal is the gap between the sale price and the asset’s net book value, meaning its entry cost less the depreciation already charged. And if the disposal comes early, a VAT adjustment may be added to the transaction.

1. Three values that get confused every time

Before any calculation, separate three notions that concern the same asset but answer entirely different questions.

Notion	Definition	What it is for
Entry cost	Purchase price and attachable costs, at the outset	The base for depreciation
Net book value	Entry cost less accumulated depreciation at a date	Measuring the result on disposal
Residual value	Estimated value of the asset at the end of its useful life	Reducing the depreciable base where relevant
Market value	The price a buyer would accept today	Negotiating, and detecting an impairment

Net book value is a measurement: it follows mechanically from the depreciation schedule. Residual value is a forecast made at the start. A fully depreciated asset has a net book value of zero, which stops it neither from existing nor from being sold — and any sale is then entirely a gain.

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2. Calculating the result on disposal

The order of operations matters: forgetting the top-up depreciation corrupts the whole of the rest of the calculation.

1. Bring depreciation up to date from the last close to the date of disposal.
2. Calculate the net book value: entry cost less accumulated depreciation at that date.
3. Take the disposal price excluding VAT as shown on the invoice.
4. Take the difference: disposal price less net book value.
5. A positive result is a gain, a negative result a loss.
6. Classify the transaction as non-recurring: it is not the result of your ordinary activity.

Example: a van bought for 200,000 dirhams, depreciated over five years, sold after three and a half years for 90,000 dirhams excluding VAT. Accumulated depreciation reaches 140,000 dirhams, so the net book value is 60,000 dirhams, and the disposal produces a gain of 30,000 dirhams.

3. The invoice and VAT

A disposal is a sale like any other in documentary terms, but it carries a tax feature that many people discover only afterwards.

• The invoice: It is compulsory and carries the same particulars as your other invoices: identification of the parties, description of the asset, price excluding VAT, VAT, continuous numbering.
• VAT on the sale: Disposing of an asset used in the business is in principle subject to VAT. The rate and any special cases are to be checked with your accountant according to the nature of the asset.
• The adjustment: The tax code sets a retention period for capital goods. A disposal before its term triggers repayment of a fraction of the VAT originally deducted, calculated in fifths over five years.
• The consequence: Selling an asset soon after acquiring it can cost more than expected. The adjustment is calculated before the price is set, not after the sale.

This adjustment is the most frequently forgotten part of a disposal. Check the date brought into service, count the years elapsed, and have your accountant confirm the calculation before you sign: this is one of the few cases where the order of steps changes the economic outcome of the transaction.

4. Clearing the accounts and the register

A disposal touches several accounts at once. A single forgotten line leaves a sold asset on the balance sheet.

1. Recognise the disposal proceeds at the price excluding VAT.
2. Remove the asset at its entry cost and clear the corresponding accumulated depreciation.
3. Recognise the net book value of the asset disposed of as a non-recurring charge.
4. Record the VAT charged and, where applicable, the adjustment.
5. Take the line off the fixed asset register, with the date and reason.
6. Check afterwards that the asset appears neither on the register nor in the trial balance.

The Moroccan chart isolates these transactions as non-recurring, with a disposal proceeds account and an account for the net value of assets disposed of. That presentation lets the operating result be read without the noise of disposals.

Mistakes to avoid

• Treating the sale price as a gain.
• Omitting the top-up depreciation to the date of disposal.
• Confusing net book value with residual value.
• Ignoring the VAT adjustment on an early disposal.
• Removing the asset from the accounts without removing it from the register.
• Classifying the result on disposal within the operating result.

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Frequently asked questions

How is net book value calculated?

Entry cost less accumulated depreciation at the date concerned. For a disposal, depreciation must first be brought up to date from the last close to the day of the sale.

What is the difference between net book value and residual value?

Residual value is an estimate made at the outset of what the asset will be worth at the end of its useful life; it is used to set the depreciable base. Net book value is what the asset is worth in your accounts at a given date. One is a forecast, the other a measurement.

Can a fully depreciated asset be sold?

Yes, and its net book value is then zero. The whole sale price is a gain. The asset must stay on the register until it actually leaves, even at 100% depreciated.

Does part of the VAT deducted have to be repaid?

It can, if the disposal falls inside the retention period for capital goods, with the adjustment calculated in fifths. Check the date brought into service and have your accountant confirm the calculation before setting the price.

Does BelloPOS handle the disposal of a fixed asset?

Fixed asset tracking and accounting journals are part of BelloPOS Pro, which carries the entry cost and depreciation needed for the calculation. The disposal invoice belongs to commercial documents, also in Pro. The tax treatment is settled with your accountant.

What to take away

A disposal is calculated in order: bring depreciation up to date, establish the net book value, compare it with the sale price, and only then check VAT and any adjustment. Deal with VAT before setting the price rather than after, and take the asset off the register the same day.

Sources

The figures and rules quoted above come from these pages, read on the date given in the article.

• Ministry of Economy and Finance, General Code of Accounting Standardisation, read 1 September 2026
• Moroccan Tax Administration, 2026 General Tax Code

Read next

Other practical guides on the same subject:

• Fixed asset register in Morocco: contents and upkeep
• Accounting depreciation in Morocco: method, useful life and example
• Depreciation, impairment or provision: what is the difference in Morocco?
• Asset or expense: classifying a business purchase in Morocco