Regulatory updates - Mauritius

• *Transactions in Scope**

A foreign digital or electronic service provider will have VAT obligations if the service is rendered:

• by a foreign supplier over the internet or an electronic network which is reliant on the internet, or
• by a foreign supplier and is dependent on information technology for its supply

This includes a wide range of services such as software, website hosting and apps, streaming platforms and digitized media.

• *Determining Customer Location**

The provider must identify a customer as Mauritian if any two of the following are located 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
• *Obligations**

Providers in scope must:

• *Register and charge VAT:** Register for VAT in Mauritius regardless of turnover, and charge 15% VAT for in-scope transactions
• *File VAT return:** Submit VAT returns within 20 days after the end of each taxable period
• *Appoint tax representative:** A tax representative with permanent establishment in Mauritius must be appointed if taxable supplies exceed MUR 3 million (ca. EUR 56,000)

Where the Mauritian recipient is VAT‑registered, the reverse charge under existing VAT legislation may apply. The interaction between non-resident charging and reverse charge should be assessed based on the recipient’s status and Mauritian Revenue Authority (MRA) guidance.

• *Timeline**

The obligation will take effect on January 1, 2026.

The scope of the Mauritian e-invoicing obligation has been broadened as part of the 2025-2026 State Budget. The new regulations stipulate that all taxpayers with an annual turnover exceeding 80 million MUR (ca. 1.5 million EUR) must now comply with the Electronic Billing System (EBS), reducing the previous threshold of 100 million MUR (around 1.9 million EUR).

The specific dates for the new requirements to take effect have not yet been announced but are anticipated to be set during 2025-2026.

As of 15 May 2024, taxpayers with a turnover over RS 100 million (ca. EUR  2 million), notified by MRA’s General Director, must start issuing e-invoices in accordance with VAT Act e-invoicing regulations.

MRA will provide information for other groups in the scope with expected timelines in the future.

Read the full communication here.