What’s new?
Effective from 1 January 2026, VAT will apply on digital and electronic services from foreign suppliers
What does this mean?
A foreign supplier providing digital and electronic services will have to register for VAT in Mauritius
Who are considered as foreign suppliers?
A foreign supplier is any person who has no permanent establishment in Mauritius or has his place of abode outside Mauritius
Which digital and electronic services are impacted?
Services supplied over the internet or an electronic network which is reliant on the internet such as:
• Music, films, streaming platforms, games
• Website hosting and apps
• Digital images, e-books, digitised documents
• Software and maintenance
• Online advertising space
• Online magazines
• Remote maintenance of programs/equipment
What are the VAT compliance requirements?
Registration
• Foreign suppliers will need to register for VAT regardless of turnover
Reporting
The foreign supplier needs to:
• Submit VAT returns
• Submit a list of taxable supplies made to Mauritian consumers
• Pay VAT in invoiced currency
Tax Representative
• Appoint a tax representative in Mauritius if the supplies are more than Rs 3m (approx. USD 66,000)
How is the location of a Mauritian customer determined?
A customer is considered to be in Mauritius if any two of the following are in Mauritius:
• Billing address
• Location of the bank from which the payment is made to the foreign supplier
• IP/Geolocation
• Phone country code
• Other commercial information
When should the foreign supplier not charge VAT?
• The foreign supplier should not charge VAT if the reverse charge mechanism is applicable
