In brief: Article 90 of the General Tax Code allows four exhaustively listed categories of persons carrying out out-of-scope or exempt activities — exporters, individual manufacturers and service providers referred to in article 91-II-3°, resellers of goods in their original state and landlords of unfurnished professional premises — to opt voluntarily for VAT registration. This option transforms the taxpayer into a taxable person, granting them the right to collect VAT and to deduct the VAT borne upstream on their purchases and investments.
Principle of voluntary registration
Certain activities fall outside the scope of VAT in Morocco: agriculture, civil acts, non-commercial and non-industrial activities. Others are exempt without right to deduction (art. 91 of the CGI). In both cases, the operator does not charge VAT to their clients, but bears the VAT charged by their suppliers, with no possibility of recovering it.
Article 90 of the CGI offers an alternative: opting voluntarily for VAT registration. By choosing this option, the taxpayer enters the standard VAT regime. They must then charge VAT on their sales, but can in return deduct the VAT paid upstream on their purchases of goods and services, raw materials and capital goods.
This option sits at a crossroads of the VAT decision tree: when a transaction is out of scope or exempt, the next question is precisely whether the article 90 option is possible and relevant. Use our VAT qualification tool to determine the regime applicable to your situation.
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Who can opt for VAT registration?
Article 90 of the CGI identifies four categories of persons who may exercise this option.
1. Exporters — traders and service providers (art. 90-1°)
Traders and service providers who directly export products, goods, merchandise or services may opt for registration in respect of their export turnover, referred to in article 92-I-1° of the CGI.
The main benefit of this option is twofold: it allows them either to source under VAT suspension pursuant to article 94 of the CGI (see our guide on the VAT suspensive regime), or to obtain a refund of the tax levied on their purchases under article 103 of the CGI (see our article on VAT credit refund).
2. Manufacturers and service providers with turnover equal to or below 500,000 MAD (art. 90-2°)
Individual manufacturers and service providers whose annual turnover is equal to or below 500,000 MAD, referred to in article 91-II-3° of the CGI, may opt. Since 1 January 2023 (Finance Law 2023, Circular Note 733), individuals practising the regulated professions listed in article 89-I-12° (lawyers, architects, engineers, consultants, certified accountants, veterinarians, etc.) benefit from the same exemption threshold and may also opt for VAT registration.
This category was restructured by the 2020 Finance Law (CN 730). The current framework replaces the former reference to “small manufacturers and small service providers” in the initial art. 91-II-1°.
3. Resellers of goods in their original state (art. 90-3°)
Non-taxable traders who resell goods in their original state may opt for registration, with the exception of essential goods exempt under article 91-I-A (1° to 4°) of the CGI: bread, couscous, semolina, short pasta, flour, cereals and baking yeast; milk, milk cream and butter; raw sugar; packaged dates produced in Morocco.
4. Landlords of unfurnished professional premises (art. 90-4°)
Since the 2018 Finance Law, landlords who lease unfurnished professional premises may opt for VAT registration. This option allows them notably to deduct the VAT on their property investment.
Note — FL 2024 amendment: The 2024 Finance Law supplemented article 89-I-10°-a) of the CGI to make VAT registration mandatory when the unfurnished professional premises were acquired or built with the benefit of the right to deduction or VAT exemption. In this case, the option is not necessary: registration is imposed by operation of law.
| Landlord’s situation | Applicable VAT regime |
|---|---|
| Premises acquired/built with VAT deduction or exemption | Mandatorily taxable (art. 89-I-10°-a) |
| Premises acquired/built without VAT benefit | Option available (art. 90-4°) |
| Furnished or equipped premises for professional use | Mandatorily taxable (art. 89-I-10°-a) |
| Premises in shopping centres (Mall) | Mandatorily taxable (art. 89-I-10°-a) |
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Advantages of the option
Voluntary registration offers several significant advantages:
- Recovery of input VAT: The taxpayer can deduct the VAT borne on all their deductible purchases (raw materials, supplies, services, overheads).
- Deduction on capital goods: The VAT levied on acquisitions of equipment, machinery, utility vehicles and professional buildings becomes deductible.
- Transmission of the right to deduction: By charging VAT, the operator allows their taxable clients to deduct it in turn. This enhances their competitiveness in a value chain composed of taxable persons.
- Access to the suspensive regime or refund: For exporters, the option opens access to the suspensive regime under article 94 or the VAT credit refund under article 103.
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Conditions and procedure
Option modalities
In accordance with Circular 717 and CN 730, the modalities are as follows:
- Formal application: The application is sent by registered letter or filed directly with the local tax office on which the taxpayer depends.
- Effective date: The option takes effect within 30 days of the date of sending or filing of the application.
- Timing: The option may be exercised at any time during the year.
- Exporters: For taxpayers already identified as exporters, the option is exercised by the sole fact of having carried out export transactions.
Scope of the option
The option may be global or partial:
- It may cover all or only part of the sales or services;
- If the taxpayer carries out several exempt or out-of-scope activities, the option may relate to a single activity;
- The option may concern a single transaction or a single client.
Minimum duration
The option is maintained for a minimum period of 3 consecutive years for exporters, small manufacturers and service providers and resellers of goods in their original state (art. 90-1° to 3°): the taxpayer cannot renounce it before the expiry of this period. For landlords of unfurnished professional premises (art. 90-4°), the option is, however, irrevocable.
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Consequences of the option
Filing and accounting obligations
The taxpayer who has opted is subject to all obligations provided for by the CGI for standard taxable persons:
- VAT return: monthly (turnover ≥ 1,000,000 MAD) or quarterly (turnover < 1,000,000 MAD), filed electronically on the SIMPL TVA portal;
- Invoicing: obligation to issue compliant invoices, showing the VAT collected, in accordance with the new electronic invoicing rules;
- Regular accounts: keeping of accounts compliant with standards in force in Morocco.
Deduction prorata in case of mixed activity
If the taxpayer carries out both taxable activities (by option) and activities that remain out of scope or exempt without right to deduction, they must apply the VAT deduction prorata mechanism. Deductible VAT is then calculated pro rata to the turnover subject to VAT relative to total turnover.
Renunciation of the option
In case of renunciation (after the minimum 3-year period), the taxpayer must carry out the adjustments required for businesses ceasing activity: repayment of VAT deducted on fixed assets not yet fully depreciated, stock adjustment, etc.
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Practical case: a landlord of unfurnished professional premises
An individual has an unfurnished office floor built, without recovering VAT, and lets it to a taxable company for 300,000 MAD excl. VAT per year. The construction cost amounts to 2,000,000 MAD excl. VAT, i.e. 400,000 MAD of VAT at 20%. The letting of unequipped professional premises acquired without any VAT advantage is outside the scope of VAT (art. 89-I-10°-a of the CGI, a contrario).
Without the option: the landlord definitively bears the 400,000 MAD of VAT on the construction and lets the premises without VAT.
With the option (art. 90-4°): the landlord files the option request, on the form prescribed by the administration, with their local tax office; it takes effect 30 days later. They can then:
- deduct the 400,000 MAD of VAT charged on the construction (within the one-year period of article 101-3°);
- charge VAT at 20% on the rent, which the taxable tenant deducts in turn;
- file their VAT returns on SIMPL TVA.
In return, the option of landlords of professional premises is irrevocable (art. 90, last paragraph) and the building must be kept for ten years, failing which an adjustment is due (art. 102 and 104-II-2°). The option is particularly advantageous when the operator makes significant investments or sells mainly to clients who are themselves taxable.
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Reference texts
- Article 90 of the CGI — Option for VAT registration: General Tax Code 2026
- Circular 717 (Volume 2, VAT) — Commentary on provisions relating to the option: Circular Note 717
- Circular Note 730 (FL 2020) — Restructuring of art. 90-2° (reference to art. 91-II-3°)
- Circular Note 728 (FL 2018) — Addition of art. 90-4° (landlords of unfurnished professional premises)
- Circular Note 735 (FL 2024) — Amendment of art. 89-I-10°-a (mandatory taxation of unfurnished professional premises acquired or built with the right to deduction or with a VAT exemption)
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 voluntary VAT registration permanent?
It depends on the category. For exporters, small manufacturers and service providers and resellers of goods in their original state (art. 90-1° to 3°), the option is not permanent but must be maintained for at least 3 consecutive years; beyond that, the taxpayer may renounce it by carrying out the adjustments provided for businesses ceasing their activity (repayment of VAT deducted on fixed assets not yet held for the statutory period, taxation of stocks and of receivables, art. 114). For landlords of unfurnished professional premises (art. 90-4°), the option is irrevocable.
Can a farmer opt for VAT in Morocco?
No, in principle. Agriculture is an activity outside the scope of VAT in Morocco, but article 90 of the CGI opens the option only to four exhaustive categories (exporters, individual manufacturers and service providers with turnover equal to or below 500,000 MAD, resellers of goods in their original state, landlords of unfurnished professional premises): a farmer selling agricultural products in their natural state is not one of them. Nor do they really need it for their investments, since most agricultural equipment (tractors, seeders, irrigation equipment, etc.) is exempt from VAT with the right to deduction when intended for exclusively agricultural use (art. 92-I-5°). On the other hand, a farmer who processes products or exports their production directly may, on that basis, fall under article 90-1° or 2°. See also our guide on VAT and agriculture in Morocco.
What is the difference between the article 90 option and mandatory registration?
Mandatory registration concerns activities within the scope of VAT (art. 87-89 of the CGI): the taxpayer is registered by operation of law, without any particular step. The article 90 option concerns out-of-scope or exempt activities: the taxpayer voluntarily chooses to become a taxable person to benefit from the right to deduction. The essential difference is that the option is a strategic choice, while mandatory registration is a legal requirement.
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