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: Transport costs borne by the seller form part of the taxable base and follow the goods’ VAT treatment. In a genuine ex-works sale, transport borne by the buyer may be a separate transaction: if the seller carries it out, it must be identified as a carrier and invoice a separate fee; if a third party carries it out, the seller must show that it acts on the buyer’s instructions and behalf and recharge exactly the carrier’s price.
- 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
Under Circular Note No. 717, subsidies granted without consideration, such as certain State investment subsidies, are generally not subject to VAT. Operating or balancing subsidies intended to support a price, cover a management deficit or fund certain expenses enter taxable turnover.
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Elements excluded from the taxable base
Rebates, discounts and allowances
Price reductions actually granted reduce the taxable base. They may take the following forms:
- 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.
Rebates and discounts actually granted reduce the taxable base. If granted after the initial invoice, they must be supported by a credit note showing the corresponding VAT when it appeared on the original invoice. Separate accounting alone is insufficient.
Returnable packaging
Returnable packaging is in principle excluded from taxable turnover if it remains the seller’s property, no VAT is invoiced on its value, and it is returned within the customary professional deadlines. If not returned, it is treated as non-returnable packaging and follows the original sale’s VAT treatment.
Security deposits
Security deposits remain excluded while they retain their security function. Their treatment depends on their allocation: an amount credited against the price of a taxable transaction enters its taxable base; compensation in the nature of damages is not, as such, consideration for a VAT-taxable transaction.
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
Self-supplies are taxable in the cases provided by Article 89-I-6° and 7° of the CGI. Supplies of materials and consumables used in a taxable transaction or one exempt with deduction rights are excluded; Article 89-I-7° also excludes personal housing construction by the persons referred to in Article 274. The base for self-supply depends on the nature of the asset (Art. 96):
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Movable goods: the normal price of the good at the time of supply, i.e. its market value (art. 96-6°);
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Buildings constructed by the business for its own needs (intended for purposes other than sale): the cost price of the construction (art. 96-4°), including:
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the cost of raw materials and supplies consumed;
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direct labour costs;
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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 taxable persons, the transaction is treated as two separate sales: each party is liable for VAT on the normal price of the good it supplies, i.e. the price that would have been invoiced to another customer on the same date for the same good (art. 96-6° of the CGI). Where a cash adjustment is paid, it increases the taxable base of the party receiving it. In the case of a sale of a new good with trade-in of a used good, the base is the normal value of the new good sold, without deduction of the value of the good taken in part-exchange.
Commission and brokerage transactions
For commission agents, brokers, agents, representatives and other intermediaries, the base is gross commissions, brokerage or other remuneration, less expenses directly related to the service, incurred on the principal’s behalf and reimbursed at cost, under Article 96-7° of the CGI.
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.
— READ ALSO
VAT in Morocco: Complete guide
VAT Reform Morocco 2024-2026: Timeline and New Rates
Self-supply and VAT in Morocco
Frequently asked questions
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?
Transport costs borne by the seller form part of the taxable base and follow the goods’ VAT treatment. In a genuine ex-works sale, transport borne by the buyer may be a separate transaction: if the seller carries it out, it must be identified as a carrier and invoice a separate fee; if a third party carries it out, the seller must show that it acts on the buyer’s instructions and behalf and recharge exactly the carrier’s price. CGI
How to determine the taxable base for self-supply?
For self-supply of a movable good, the taxable base is the normal price of the good, i.e. its market value at the time of supply (art. 96-6° of the CGI). For self-supply of a building intended for the business's own needs (and not for sale), the base is the cost price of the construction (art. 96-4°), which includes the cost of materials, labour, design studies and construction overheads. VAT is then calculated at the applicable rate (20% or 10% depending on the nature of the good) on this base.
Do discounts and allowances reduce the taxable base?
Rebates and discounts actually granted reduce the taxable base. If granted after the initial invoice, they must be supported by a credit note showing the corresponding VAT when it appeared on the original invoice. Separate accounting alone is insufficient.
