In brief: Article 90 of the General Tax Code allows persons carrying out out-of-scope or exempt activities 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. Liberal professions mentioned in article 89-I-12° are however excluded from this possibility.
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 of the CGI (bread, fresh milk, raw sugar, packaged dates, raisins, dried figs).
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. The taxpayer cannot renounce it before the expiry of this period.
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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 million MAD) or quarterly (turnover ≤ 1 million 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 farmer who invests
A Moroccan farmer generates annual turnover of 800,000 MAD exclusively from the sale of agricultural products. Their activity is outside the scope of VAT (agricultural activity). They decide to invest in modern agricultural equipment (tractor, irrigation system) for an amount of 600,000 MAD excl. VAT, i.e. 120,000 MAD of VAT at 20%.
Without the option: The farmer bears the 120,000 MAD of VAT as a cost. They cannot recover anything.
With the option (art. 90): The farmer files a registration application with their local tax office. After 30 days, they become a taxable person. They can then:
- Deduct the 120,000 MAD of VAT on their investment;
- Charge VAT at 20% on their sales to taxable clients;
- File their VAT returns on SIMPL TVA.
In return, they commit for a minimum period of 3 years, must keep regular accounts and comply with all the filing obligations of taxable persons.
The option is particularly advantageous when the out-of-scope 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 735 (FL 2024) — Addition of art. 90-4° (landlords of unfurnished professional premises)
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?
No, the option is not permanent, but it is maintained for a minimum period of 3 consecutive years. Beyond this period, the taxpayer may renounce it by carrying out the mandatory adjustments (repayment of VAT deducted on non-depreciated fixed assets, stock adjustment). Renunciation must be formalised with the tax office.
Can a farmer opt for VAT in Morocco?
Yes. Agriculture is an activity outside the scope of VAT in Morocco. Article 90 of the CGI allows farmers to opt voluntarily for registration. This option is particularly advantageous for operators who make significant investments (equipment, irrigation, buildings) and wish to recover the VAT on these purchases. 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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