In brief: The VAT taxable base in Morocco consists of the price of goods, works or services, plus ancillary costs and taxes (excluding VAT itself). Article 96 of the General Tax Code sets out the rules. Use the VAT qualification tool to determine the regime applicable to your transaction, then apply the rate in force (20% or 10%) to the base thus determined.
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What is the VAT taxable base?
The taxable base represents the amount on which the VAT rate is applied to calculate the tax due. In other words, it is the fiscal base for VAT. Article 96 of the CGI 2026 provides that the taxable base includes the value of goods, works or services, plus all related costs, duties and taxes, with the exception of VAT itself.
Correct determination of the taxable base is essential: an undervalued base exposes the business to reassessments during a tax audit, while an overvalued base results in overpayment of VAT to the detriment of cash flow.
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Elements included in the taxable base
The principal price excluding VAT
The starting point is the price agreed between the parties for the supply of goods or provision of services, excluding VAT. This price constitutes the direct consideration for the taxable transaction. It is the amount exclusive of tax (excl. VAT) shown on the invoice.
Ancillary costs
Article 96 of the CGI specifies that the taxable base includes all ancillary costs invoiced to the client, notably:
- Transport and delivery charges: when invoiced by the seller to the client, they form an integral part of the taxable base, even if shown separately on the invoice.
- Non-returnable packaging costs: disposable packaging (cartons, plastic film, non-returnable crates) is included in the taxable base. They form part of the product’s sale price.
- Insurance charges: when the seller invoices insurance charges related to the delivery of goods, these charges are included in the taxable base.
- Assembly and installation charges: if they are inseparable from the delivery of the goods, they are included in the base.
Duties and taxes (excluding VAT)
The taxable base also includes duties and taxes borne by the transaction, with the exception of VAT itself. The following are thus included:
- Customs duties: for imports, the VAT taxable base includes the customs value plus customs duties and parafiscal taxes.
- Special taxes: internal consumption tax (TIC) on certain products (tobacco, beverages, energy products), special cement tax, etc.
- Excise duties: where applicable, they are included in the taxable base.
Price-linked subsidies
Subsidies directly linked to the price of a taxable transaction, i.e. subsidies paid by a third party in consideration of a price reduction granted to the consumer, are included in the taxable base. Equipment or operating subsidies, which are not directly linked to the price of a specific transaction, are excluded.
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Elements excluded from the taxable base
Rebates, discounts and allowances
Price reductions granted to the client, whatever their form, are excluded from the taxable base provided they appear on the invoice or are accounted for separately:
- Rebate: reduction granted for quality defect, delivery delay or non-conformity.
- Discount: commercial reduction linked to order volume or customer loyalty.
- Allowance: reduction calculated at period end on all transactions with the same client.
These reductions must appear distinctly on the invoice to be deductible from the taxable base. A discount not mentioned on the invoice cannot be deducted.
Returnable packaging
Returnable packaging (bottles, crates, containers) that is subject to a loan agreement and intended to be returned by the client is not included in the taxable base, provided the deposit is invoiced separately and the deposit price is refunded upon return. If the packaging is not returned within the agreed period, the deposit becomes a sale and is included in the taxable base.
Security deposits
Sums paid as security deposits, intended to guarantee the proper performance of a contract, are not included in the taxable base as long as they retain their guarantee character. They only become taxable if they are definitively acquired by the supplier (in case of client default, for example).
Disbursements
Disbursements — i.e. sums advanced by an intermediary on behalf of and in the name of their client — are excluded from the intermediary’s taxable base, provided:
- they are incurred in the name and on behalf of the client;
- they are re-invoiced identically, without margin;
- they are supported by accounting documents in the client’s name.
Classic example: registration fees and land registration charges advanced by a notary on behalf of their client are not subject to VAT in the hands of the notary.
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Special cases for determining the taxable base
Self-supply
When a taxable business supplies itself with a good or service that it would normally have purchased from a third party, VAT on self-supply is chargeable. The taxable base for self-supply is the cost price of the good or service, i.e. the total production cost including:
- the cost of raw materials and supplies consumed;
- direct labour costs;
- production overheads (depreciation, energy, etc.).
Self-supply concerns notably buildings constructed by the business for its own use, stock withdrawals for the manager’s personal use, or in-house manufacture of machinery or equipment.
For more information, see our guide on self-supply for VAT purposes.
Exchange of goods
In case of exchange of goods between two parties, the taxable base is the value of the good received if it exceeds the value of the good given up. If a cash adjustment is paid in addition, it is added to the value of the good given up to constitute the taxable base of the operator receiving it.
In practice, each party is liable for VAT on the value of the good they supply. When values differ, each operator’s taxable base corresponds to the higher value plus any cash adjustment.
Commission and brokerage transactions
For commission agents, brokers, representatives and other intermediaries, the taxable base is limited to the commission or remuneration received, and not to the total value of the intermediated transaction. This applies provided the intermediary acts in their own name but on behalf of a third party (principal).
If the intermediary acts in their own name and on their own account (buy-resell), the full selling price constitutes the taxable base.
Imports
For imported goods, the VAT taxable base at import consists of:
- the declared customs value;
- plus customs duties and all parafiscal taxes due at import;
- plus internal consumption tax (TIC) where applicable;
- excluding VAT itself.
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How to calculate VAT from the taxable base
Once the taxable base is determined, the VAT calculation is straightforward. Since the reform completed in 2026, Morocco has only two rates: the standard rate of 20% and the reduced rate of 10% (art. 99 of the CGI). To identify the rate applicable to your transaction, see our VAT qualification tool.
| Element | Calculation |
|---|---|
| Amount excl. VAT (price + ancillary costs + taxes excl. VAT) | 100,000 MAD |
| Applicable rate (example: 20%) | 20% |
| VAT due | 20,000 MAD |
| Amount incl. VAT | 120,000 MAD |
To convert from incl. VAT to excl. VAT: Amount excl. VAT = Amount incl. VAT / (1 + VAT rate). Example: 120,000 / 1.20 = 100,000 MAD.
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Reference texts: General Tax Code 2026 (PDF) — Circular Note No. 717 — VAT (Volume 2) — Circular Note No. 735 (FL 2024) — Circular Note No. 737 (FL 2026)
— TOOLS
VAT Qualification Morocco 2026 — Free tool: Determine in just a few clicks whether your transaction is outside scope, exempt or taxable, and at what rate. Compliant with the 2026 CGI.
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FAQ
Is VAT calculated on the amount excluding or including VAT?
VAT is always calculated on the amount exclusive of tax (excl. VAT). The taxable base excludes VAT itself but includes all other elements: principal price, ancillary costs (transport, non-returnable packaging), customs duties and special taxes. The amount inclusive of VAT corresponds to the price excl. VAT plus the calculated VAT. It is therefore essential to properly distinguish between the two concepts in invoicing to avoid settlement errors.
Are shipping charges invoiced to the client included in the taxable base?
Yes. When the seller invoices transport or delivery charges to the client, these charges form an integral part of the VAT taxable base (art. 96 of the CGI). They are subject to the same VAT rate as the goods supplied. Only transport charges incurred in the name and on behalf of the client (disbursements) may be excluded from the base, provided they are justified and re-invoiced identically.
How to determine the taxable base for self-supply?
For self-supply, the taxable base corresponds to the cost price of the good or service, not its market value. This cost price includes the cost of raw materials, direct labour and production overheads. VAT is then calculated at the applicable rate (20% or 10% depending on the nature of the good or service) on this base.
Do discounts and allowances reduce the taxable base?
Yes, provided they appear on the invoice. Rebates, discounts and allowances granted to the client are deducted from the VAT taxable base. If a discount is granted after the initial invoicing (credit note), it gives rise to an adjustment of the VAT initially collected. The important thing is to have an accounting and documentary trail compliant with CGI requirements.
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