A branded mug, a client lunch and a loyalty discount may all support a relationship, but they do not follow the same rule. The CGI expressly covers advertising gifts with a unit value no more than MAD 100 bearing the company’s name, acronym or product brand. Representation cost and VAT then need separate conclusions.
Sort it in five steps
- Identify gift, sample, discount, meal or reception.
- Name the recipient and business objective.
- For advertising gifts test unit value and branding.
- Retain purchase, distribution and approval.
- Run the direct-tax test.
- Run a second VAT test without copying the first conclusion.
1. The precise advertising-gift rule
Article 10-I-B-1 expressly covers advertising gifts with a maximum unit value of MAD 100 bearing the corporate name, company name/acronym or brand of products it makes or sells. Evidence all three: advertising nature, each unit’s value and real branding.
| Case | Decisive question |
|---|---|
| MAD 20 branded pen | branding and distribution |
| MAD 600 hamper | outside express MAD 100 rule |
| Product sample | sample or gift classification |
| Discount voucher | price reduction, not a gifted object |
| Personal gift to manager | possible liberality/benefit |
| Competition prize | promotion rules and evidence |
Do not split a hamper artificially into pieces to fall under MAD 100. Use the real commercial unit and validate the conclusion.
2. Keep a proportionate campaign register
The supplier invoice proves total cost, not who received the items or why. A simple register makes the campaign reviewable without collecting excessive personal data.
| Field | Example |
|---|---|
| Campaign | Rabat shop opening |
| Item | branded notebook |
| Quantity/cost | 100 × MAD 45 |
| Period | 5–12 September |
| Audience | invited business clients |
| Owner | name and approval |
| Remainder | 8 returned to promo stock |
Retain one sample or branding photograph and approved artwork when material.
3. Meals and representation use another test
The MAD 100 limit is not a meal allowance. For a meal or reception, document operating need, participants or mission, place, date, purpose and reasonable amount, then validate direct-tax treatment.
- Write purpose at or before spending.
- Identify relevant team or counterparty.
- Keep detailed invoice and payment.
- Use separate approval where possible.
- Remove private companion/share.
- Reject generic ‘client relations’ wording.
- Reconcile advance and reimbursement.
The meal and travel guide gives the mission pack.
MAD 100 is neither a meal budget nor a VAT threshold
The cited rule is for a branded unit advertising gift. It does not validate every commercial cost or automatically open input VAT recovery.
4. VAT does not automatically follow the cost
Article 106 excludes input VAT on mission, reception or representation expenses and on liberalities. A cost allowed for direct tax can therefore include non-recoverable VAT.
- Book non-recoverable VAT under the accounting policy.
- Do not force an input-VAT account from a receipt.
- Separate customer discount, loyalty and physical gift.
- Validate complex promotions.
- Keep the conclusion with the campaign file.
BelloPOS can record configured discounts or loyalty and show the source sale. It cannot turn a gift cost into a tax deduction.
Mistakes to avoid
- Giving unbranded items.
- Testing total rather than unit.
- Calling a discount a gift.
- Missing recipients.
- Recovering representation VAT.
- Mixing private and campaign spend.
Frequently asked questions
What is the deductible advertising-gift limit?
Article 10 refers to a maximum unit value of MAD 100 with the required name, acronym or brand.
Is a MAD 150 gift deductible up to MAD 100?
Do not assume a partial allowance: it no longer meets the express rule; validate the whole treatment.
Does a client meal use the MAD 100 cap?
No. Meals and representation use a separate purpose, evidence and treatment test.
Can I recover VAT on a representation meal?
Article 106 excludes VAT on mission, reception and representation expenses.
What can BelloPOS trace?
Recorded discounts, loyalty and sales, not the tax classification of a gift or meal.
What to take away
Choose the right category before spending. A defensible advertising gift has a unit, value, branding, campaign and trail; meals and VAT are concluded separately.
Sources
The figures and rules quoted above come from these pages, read on the date given in the article.
Separate promotion from price reduction
Trace discounts inside the sale and keep physical advertising items in a separate campaign file.
Read next
Other practical guides on the same subject: