Value Added Tax

Taxable supplies — 15%

The standard rate of VAT in Mauritius is 15%. The rate applies to all standard rated supplies of goods and services.

A taxable supply includes a supply which is zero-rated, but it does not include an exempt supply.

Zero-rated supplies — 0%

Items of zero-rated supplies are listed under the Fifth Schedule to the VAT Act. A zero-rated supply of services is a service rendered to a person who belongs in a country other than Mauritius and who is outside of Mauritius at the time the service is performed.

Some examples of such supplies include, among others:

  • exports of goods from Mauritius under Customs control and export of services from Mauritius
  • certain goods and services which are supplied on the local market.

No VAT is charged on zero-rated supplies, but they are considered as part of taxable supplies and input tax suffered on the production of such supplies can be claimed back.

Exempt supplies

Exempt supplies are not subject to VAT. Examples of exempt supplies include certain basic food commodities.

 

VAT registration

Compulsory registration

The VAT Act states that a company is required to register for VAT if the annual turnover of its taxable supplies exceeds or is likely to exceed Rs6m.

Some persons as listed in the Tenth Schedule to the VAT Act are also required to compulsorily register for VAT irrespective of their turnover. These are mainly professionals such as accountants, lawyers, consultants etc.

However, where the turnover of a company is made up exclusively of zero-rated supplies or zero-rated and exempt supplies, the company is not compulsorily required to register for VAT.

Any taxable person who does not apply for compulsory registration shall be liable to pay a penalty of Rs5,000 for every month or part of the month from the taxable period in respect of which they are liable to be registered as a registered person up to the month immediately preceding the month in which the application for registration is submitted. The penalty is capped at Rs50,000.

Voluntary registration
Any person who makes taxable supplies not exceeding Rs6m in the course and furtherance of their business, may apply to the Mauritius Revenue Authority (MRA) for voluntary registration as a registered person.