VAT Registration in Mauritius: Complete Guide for Businesses (2025)

Value Added Tax (VAT) is a consumption tax that applies to most goods and services in Mauritius. If you're running a business, understanding VAT registration, rates, and compliance requirements is essential to avoid penalties and manage cash flow effectively.

This comprehensive guide covers everything from registration thresholds to filing requirements, based on expert advice from accountants who handle VAT compliance for hundreds of Mauritian businesses.

Table of Contents

1. What is VAT in Mauritius?
2. Do You Need to Register for VAT?
3. VAT Rates and Categories
4. How to Register for VAT
5. VAT Invoicing Requirements
6. Input Tax vs Output Tax
7. Filing VAT Returns
8. Common Mistakes and Penalties
9. VAT Refunds
10. FAQ

What is VAT in Mauritius? {#what-is-vat}

Value Added Tax (VAT) is an indirect tax levied on the supply of goods and services at each stage of the supply chain. In Mauritius, VAT is administered by the Mauritius Revenue Authority (MRA).

How VAT works:

1. You charge VAT on goods/services you sell (output tax)
2. You pay VAT on goods/services you buy for business (input tax)
3. You remit the difference to MRA (output tax minus input tax)
4. If input tax exceeds output tax, you can claim a refund

Current standard VAT rate: 15% (as of January 2025)

Example:

• You sell furniture for Rs 100,000 + VAT (Rs 15,000) = Rs 115,000 collected from customer
• You paid Rs 60,000 + VAT (Rs 9,000) = Rs 69,000 for materials
• VAT to remit to MRA: Rs 15,000 - Rs 9,000 = Rs 6,000

The customer ultimately bears the VAT cost, but as a business, you're responsible for collection and remittance.

Do You Need to Register for VAT? {#registration-requirements}

Whether you must register for VAT depends on your turnover and business type.

Mandatory Registration

You must register for VAT if:

1. Your taxable turnover exceeds Rs 6 million per year

   • Calculated over any 12-month period
   • Includes all supplies subject to VAT (standard rated and zero-rated)
   • Must register within 21 days of exceeding threshold

2. Your expected turnover will exceed Rs 6 million

   • Based on reasonable business projections
   • Register before starting to trade if you expect to exceed threshold

3. You import services exceeding Rs 6 million per year

   • Businesses buying services from non-VAT registered foreign suppliers
   • Reverse charge mechanism applies

Penalty for late registration: 10% of tax due plus interest charges

"Many new businesses underestimate their first-year revenue and miss the mandatory registration deadline," warns Priya Ramdin, Director at Island Accounting Services. "By the time they realize they've crossed Rs 6 million, they've been operating illegally for months. We had a client who faced Rs 180,000 in back taxes and penalties because they didn't register when required."

Voluntary Registration

You can voluntarily register for VAT even if your turnover is below Rs 6 million if:

• You want to recover input VAT on business expenses
• Your customers are VAT-registered businesses (they can reclaim VAT you charge)
• You want to appear more established and credible
• You're about to make large capital purchases and want to reclaim VAT

When Voluntary Registration Makes Sense

Scenario 1: B2B Business with Low Margins

You're a business consultant earning Rs 4 million/year. Your clients are all VAT-registered companies. You spend Rs 1.5 million on equipment, software, and subcontractors.

Without VAT registration:

• Revenue: Rs 4 million (no VAT charged or collected)
• Expenses: Rs 1.5 million + Rs 225,000 VAT = Rs 1,725,000 (VAT is a cost you absorb)
• Net cost of VAT: Rs 225,000

With VAT registration:

• Revenue: Rs 4 million + Rs 600,000 VAT = Rs 4.6 million charged (clients reclaim the VAT)
• Expenses: Rs 1.5 million + Rs 225,000 VAT = Rs 1,725,000 (you reclaim the input VAT)
• VAT position: Rs 600,000 output - Rs 225,000 input = Rs 375,000 to remit to MRA
• But your clients pay it and reclaim it, so no real cost to anyone
• You recovered Rs 225,000 VAT on expenses that you couldn't before

"For B2B businesses, voluntary registration almost always makes financial sense," explains Ramdin. "Your clients don't care about paying VAT since they reclaim it anyway. But you get to reclaim VAT on all your business expenses."

Scenario 2: Business About to Make Major Purchase

You're launching a restaurant and need to buy Rs 3 million in equipment (ovens, refrigeration, furniture). If you register for VAT before purchasing:

• Equipment: Rs 3 million + Rs 450,000 VAT = Rs 3.45 million
• You reclaim Rs 450,000 VAT
• Net cost: Rs 3 million

Without VAT registration, you pay Rs 3.45 million total - the VAT is a pure cost.

When Voluntary Registration Doesn't Make Sense

B2C business with price-sensitive customers:

You run a hair salon earning Rs 3 million/year. Your customers are individuals (not VAT-registered).

Without VAT registration:

• Haircut price: Rs 800
• Customer pays: Rs 800

With VAT registration:

• Haircut price: Rs 800
• Customer pays: Rs 800 + Rs 120 VAT = Rs 920

Your customers can't reclaim VAT. Either:

1. You absorb the VAT (reducing your effective revenue by 13%), or
2. You increase prices by 15% (and likely lose price-sensitive customers)

"For consumer-facing businesses below the Rs 6 million threshold, voluntary registration rarely makes sense," says Ramdin. "Unless you have very high input costs that you can reclaim VAT on, you're better off staying below the threshold and keeping your prices competitive."

Exempted Businesses (Cannot Register for VAT)

Certain supplies are exempt from VAT, meaning you cannot register for VAT if you only make exempt supplies:

• Financial services (lending, insurance, some investment services)
• Residential rental properties (letting for more than 60 days)
• Education services (schools, universities, tuition)
• Medical and health services
• Passenger transport (buses, taxis, certain ferries)

Important distinction:

• Zero-rated supplies: 0% VAT rate, but you CAN register and reclaim input VAT (exports, international transport, certain foodstuffs)
• Exempt supplies: No VAT charged, and you CANNOT register or reclaim input VAT

VAT Rates and Categories {#vat-rates}

Mauritius has three VAT categories:

Standard Rate: 15%

Applies to most goods and services, including:

• Retail goods
• Professional services
• Hospitality (hotels, restaurants)
• Construction services
• Vehicles and fuel
• Electronics and appliances
• Clothing and footwear
• Entertainment

Zero-Rated: 0%

No VAT charged, but you can register and reclaim input VAT:

Exports:

• Goods exported outside Mauritius
• Services supplied to non-residents outside Mauritius
• International transport services
• Goods sold in duty-free shops

Specific goods:

• Basic foodstuffs (rice, flour, edible oil, powdered milk)
• Certain medical equipment and pharmaceuticals
• Printed books (but not e-books)
• Agricultural equipment and fertilizers

Why zero-rating matters: "If you're an exporter, you operate at 0% VAT but reclaim 15% VAT on all your inputs," explains Priya Ramdin from Island Accounting Services. "This gives exporters a competitive advantage. We help exporters manage their VAT cash flow since they're constantly in refund positions."

Exempt: No VAT

Cannot register for VAT or reclaim input VAT:

• Financial services (interest, lending, insurance premiums)
• Long-term residential rent (more than 60 days)
• Educational services
• Medical services provided by licensed practitioners
• Passenger transport
• Betting and gaming

How to Register for VAT {#registration-process}

VAT registration is done online through the MRA portal.

Step-by-Step Registration Process

Step 1: Gather Required Documents

• Certificate of incorporation (for companies)
• Business Registration Card
• National identity card (for sole proprietors)
• Tax Account Number (TAN) - obtained when you registered the company
• Business bank account details
• Proof of business address
• Details of business activities
• Estimated annual turnover
• Date business commenced or will commence

Step 2: Access MRA Portal

• Go to MRA e-Services
• Log in using your TAN and password
• Select "VAT Registration" from menu

Step 3: Complete Online Application

Fill in required information:

• Business details (legal name, trading name, address)
• Nature of business activities
• Accounting period (usually calendar month)
• Estimated monthly/annual turnover
• Bank account for VAT refunds
• Date of liability (when you crossed or will cross threshold)

Step 4: Upload Supporting Documents

• Scanned copy of business registration
• Copy of ID/passport
• Proof of business address
• Bank statement or letter
• Any relevant licenses

Step 5: Submit Application

• Review all information carefully
• Submit electronically
• Receive acknowledgment reference number

Step 6: MRA Review and Inspection

• MRA reviews application (typically 2-3 weeks)
• May conduct site visit to verify business premises and operations
• May request additional documents or clarification

Step 7: Receive VAT Registration Certificate

Once approved:

• VAT registration number issued (usually starts with V)
• Effective date of registration specified
• Certificate available for download from portal

Total timeline: 2-4 weeks from application to approval

Registration cost: Free (no government fee)

Professional Assistance with Registration

While VAT registration is free and can be done yourself, many businesses hire accountants to handle it:

Why use a professional:

• Ensure correct accounting period selection (impacts cash flow)
• Advise on effective date selection (can backdate in certain circumstances)
• Set up proper accounting systems and VAT procedures from day one
• Prepare for MRA site inspection
• Immediate access to expert advice for first few filings

Typical cost: Rs 3,000-8,000 for registration assistance plus system setup

"The Rs 5,000 you spend on professional VAT registration is the best money you'll spend," says Ramdin. "We set up the VAT accounts correctly in your bookkeeping system, configure your invoicing to include VAT properly, and train your staff on what expenses can claim input VAT. This prevents months of messy records and disallowed claims."

Island Accounting Services offers VAT registration packages starting at Rs 5,000, including:

• Complete application submission
• Document preparation and upload
• MRA site inspection preparation
• QuickBooks/Xero VAT setup
• Training on VAT invoicing and record keeping
• First return filing assistance

VAT Invoicing Requirements {#invoicing-requirements}

Once VAT registered, you must issue proper VAT invoices for all taxable supplies.

Mandatory Information on VAT Invoices

Your invoice must show:

1. ✅ The word "Tax Invoice" or "VAT Invoice"
2. ✅ Sequential invoice number
3. ✅ Your business name and VAT registration number
4. ✅ Your business address
5. ✅ Customer name and address
6. ✅ Invoice date
7. ✅ Description of goods/services supplied
8. ✅ Quantity and unit price (excluding VAT)
9. ✅ Total amount excluding VAT
10. ✅ VAT amount (either as separate line or stated as included)
11. ✅ Total amount including VAT

Invoice Format Example

TAX INVOICE

Island Consulting Services Ltd
VAT No: V12345678
123 Royal Road, Ebene Cybercity
Tel: +230 5xxx-xxxx

Invoice No: INV-2025-001
Date: January 15, 2025

Bill To:
ABC Company Ltd
456 Business Avenue
Port Louis

Description                          Qty    Unit Price    Amount
Business strategy consultation        1     Rs 50,000    Rs 50,000
Market research report               1     Rs 30,000    Rs 30,000
                                                         ----------
Subtotal (excluding VAT):                               Rs 80,000
VAT @ 15%:                                              Rs 12,000
                                                         ----------
TOTAL DUE:                                              Rs 92,000

Payment Terms: Net 30 days

Simplified Invoices (Retail Sales)

For retail sales under Rs 2,500, you can issue simplified invoices (like till receipts) that only show:

• Your business name and VAT number
• Date
• Description of goods
• Total including VAT
• Statement "VAT included" or show VAT amount

Credit Notes

If you need to cancel or reduce an invoice:

• Issue a credit note with reference to original invoice
• Show VAT adjustment
• Adjust your VAT return in the period credit note was issued

Digital Invoicing

MRA accepts electronic invoices if they contain all required information and are:

• Properly secured and authenticated
• Readable and reproducible
• Stored for 7 years

Popular invoicing software for Mauritius businesses:

• QuickBooks (cloud-based, Rs 2,500/month)
• Xero (cloud-based, Rs 2,000/month)
• Zoho Books (affordable, Rs 800/month)
• Wave (free for basic features)

"Proper invoicing software pays for itself in time saved and errors prevented," advises Priya Ramdin. "We've seen businesses face VAT audits where they couldn't produce proper invoices. The MRA disallowed half their input tax claims - costing them Rs 200,000+ because they were using Word document templates."

Input Tax vs Output Tax {#input-output-tax}

Understanding the difference between input and output tax is crucial for VAT compliance.

Output Tax (VAT You Collect)

VAT you charge on sales of goods and services:

Example:

• Sell consulting services: Rs 100,000
• Charge VAT at 15%: Rs 15,000
• Total invoice: Rs 115,000
• Output tax to remit: Rs 15,000

Input Tax (VAT You Pay)

VAT you pay on business purchases and expenses:

Example:

• Purchase office equipment: Rs 50,000
• Pay VAT at 15%: Rs 7,500
• Total paid: Rs 57,500
• Input tax to reclaim: Rs 7,500

What Qualifies as Input Tax?

You can reclaim VAT on purchases used for making taxable supplies:

Allowable input tax:

• ✅ Raw materials and stock for resale
• ✅ Equipment and machinery
• ✅ Office supplies and furniture
• ✅ Utilities (electricity, water, internet)
• ✅ Professional services (legal, accounting, consultancy)
• ✅ Marketing and advertising
• ✅ Vehicle purchases and fuel (if used for business)
• ✅ Rent and property costs (if commercial)
• ✅ Staff training
• ✅ Repairs and maintenance

Non-allowable input tax:

• ❌ Personal expenses
• ❌ Entertainment (meals, drinks unless directly attributable to taxable supply)
• ❌ Staff recreational activities
• ❌ Purchases for making exempt supplies
• ❌ Expenses not supported by valid VAT invoice

Mixed Use and Apportionment

If purchases are used for both taxable and exempt activities, or both business and personal use, you must apportion input tax:

Example: Business vehicle used 70% business, 30% personal

• Vehicle cost: Rs 800,000 + VAT Rs 120,000
• Allowable input tax: Rs 120,000 × 70% = Rs 84,000
• Must maintain logbook to prove business use percentage

Example: Business makes both VAT-able and exempt supplies

• Total input tax: Rs 50,000
• Taxable supplies: Rs 2 million (80% of total)
• Exempt supplies: Rs 500,000 (20% of total)
• Allowable input tax: Rs 50,000 × 80% = Rs 40,000

"Apportionment is where many businesses get audited," warns Ramdin from Island Accounting Services. "You need proper documentation - logbooks for vehicles, allocation methodologies for mixed expenses. We help clients set up simple systems to track this monthly, so they're never caught unprepared in an audit."

Net VAT Position

Your net VAT position = Output tax - Input tax

Scenario 1: Output tax exceeds input tax

• Output tax collected: Rs 150,000
• Input tax paid: Rs 90,000
• Net VAT payable to MRA: Rs 60,000

Scenario 2: Input tax exceeds output tax (refund position)

• Output tax collected: Rs 80,000
• Input tax paid: Rs 120,000
• Net VAT refundable from MRA: Rs 40,000

Exporters and businesses making large capital purchases are commonly in refund positions.

Filing VAT Returns {#filing-returns}

VAT-registered businesses must file regular returns with MRA.

Filing Frequency

Monthly returns: Most businesses file monthly VAT returns

• Due date: 21st of the month following the return period
• Example: January VAT return due by February 21

Quarterly returns: Small businesses (turnover < Rs 10 million) can apply for quarterly filing

• Due dates: April 21, July 21, October 21, January 21
• Reduces administrative burden

How to File VAT Returns

Step 1: Reconcile VAT Accounts

Before filing, ensure:

• All sales invoices for the period are recorded
• All purchase invoices are recorded and have valid VAT invoices
• VAT amounts calculated correctly
• Bank statements reconciled

Step 2: Complete VAT Return Form

The VAT return (Form RV-R) includes:

Part 1: Output Tax

• Standard-rated supplies (15%)
• Zero-rated supplies (0%)
• Exempt supplies
• Total output tax

Part 2: Input Tax

• Standard-rated purchases (15%)
• Purchases for which input tax deduction is not available
• Total input tax

Part 3: Net VAT

• Output tax minus input tax
• If positive: amount payable to MRA
• If negative: amount refundable from MRA

Step 3: File Online via MRA Portal

• Log in to MRA e-Services portal
• Select "VAT Return"
• Enter figures from your VAT accounts
• System calculates net position automatically
• Review and submit

Step 4: Make Payment (If Tax Payable)

If you owe VAT:

• Payment due by 21st of following month (same as filing deadline)
• Pay via:
  • Online banking (most common)
  • MRA e-payment portal
  • Bank counter (bring payment slip from portal)

Payment reference number: Your VAT registration number

Record Keeping Requirements

You must keep for 7 years:

• All sales invoices (copies)
• All purchase invoices
• VAT account showing input and output tax
• Credit/debit notes
• Bank statements
• Accounting records
• VAT returns and supporting calculations

Format: Can be electronic or paper, but must be readily accessible for MRA inspections

Professional Assistance with VAT Returns

DIY filing:

• Free (no MRA fees)
• Requires proper bookkeeping throughout the month
• Risk of errors and penalties if incorrect

Professional assistance:

• Typical cost: Rs 3,000-8,000 per month (depending on transaction volume)
• Accountant reviews all invoices, ensures correct VAT treatment
• Files return accurately and on time
• Provides VAT reconciliation and cash flow forecast
• Peace of mind

"Monthly VAT compliance isn't expensive when you consider the cost of errors," explains Priya Ramdin from Island Accounting Services. "We charge Rs 5,000/month for standard VAT return preparation, which includes monthly bookkeeping cleanup, VAT reconciliation, and filing. That's Rs 60,000/year to eliminate the risk of penalties, interest, and audit adjustments that could cost 10 times that amount."

Island Accounting Services VAT compliance packages:

• Starter: Rs 3,500/month (up to 50 transactions, quarterly filing)
• Standard: Rs 5,000/month (up to 150 transactions, monthly filing)
• Premium: Rs 8,000/month (unlimited transactions, weekly bookkeeping, VAT advisory)

All packages include:

• Monthly/quarterly VAT return preparation and filing
• VAT reconciliation to ensure accuracy
• Input tax eligibility review (maximize recoverable VAT)
• On-time filing guarantee (we pay penalties if we're late)
• MRA correspondence handling
• Annual VAT audit support

Common Mistakes and Penalties {#mistakes-penalties}

VAT compliance errors can be expensive. Here are the most common mistakes and how to avoid them:

Mistake 1: Late Filing

Penalty: Rs 2,000 for each late return + 10% of tax due

Example:

• VAT return due February 21
• You file March 5 (12 days late)
• VAT payable: Rs 80,000
• Penalty: Rs 2,000 + Rs 8,000 (10%) = Rs 10,000

How to avoid: Set up automated reminders at least 5 days before deadline. Better yet, hire an accountant with a filing guarantee.

Mistake 2: Late Payment

Penalty: 5% of unpaid amount plus interest at 1% per month

Example:

• VAT due February 21: Rs 80,000
• You pay March 15 (22 days late)
• Immediate penalty: Rs 4,000 (5%)
• Interest: Rs 800 (1% for one month)
• Total additional cost: Rs 4,800

How to avoid: Link your business bank account to MRA portal for automatic payments, or set up payment a few days before the deadline.

Mistake 3: Claiming Input Tax Without Valid VAT Invoice

Consequence: MRA disallows the input tax claim during audit

Example:

• You spent Rs 200,000 on supplies but have receipts without VAT numbers
• VAT claimed: Rs 30,000
• MRA disallows Rs 30,000 + applies penalties for incorrect returns

How to avoid: Only accept VAT invoices that show supplier VAT number and meet all requirements. Train your purchasing team. Mauritius Business Law Associates can review your procurement contracts to include VAT invoice requirements.

Mistake 4: Not Charging VAT Once Registered

Consequence: You must remit VAT to MRA even if you didn't charge customers

Example:

• You became VAT registered on January 1
• You continued charging Rs 100,000 without VAT (old habit)
• MRA treats this as Rs 86,956 + VAT Rs 13,044 = Rs 100,000
• You owe Rs 13,044 to MRA from your own pocket

How to avoid: Update all pricing, quotations, invoices, and accounting software immediately upon VAT registration.

Mistake 5: Treating Exempt and Zero-Rated the Same

Consequence: Claiming input tax on exempt supplies (not allowed)

Example:

• You operate a private school (exempt from VAT)
• You claim Rs 50,000 input VAT on purchases
• MRA disallows all input tax + penalties for incorrect claims

How to avoid: Understand the distinction. Seek professional advice from Island Accounting Services if your business has multiple revenue streams.

Mistake 6: Poor Record Keeping

Consequence: Cannot defend VAT position in audit, lose input tax claims

Example:

• MRA audits your 2023 VAT returns
• You cannot produce invoices for Rs 500,000 in claimed input tax
• MRA disallows Rs 75,000 input tax + penalties + interest = Rs 90,000+ total

How to avoid: Implement cloud accounting system (Xero, QuickBooks) that stores digital copies of all invoices. Never rely on paper only.

Mistake 7: Charging Wrong VAT Rate

Consequence: Under-remittance of VAT + penalties

Example:

• You sell rice (zero-rated) but also sell packaged snacks (standard-rated at 15%)
• You accidentally charge 0% on everything
• MRA determines you owe Rs 45,000 VAT + penalties

How to avoid: Properly code your products/services in accounting system. Get professional product classification advice for complex cases.

Penalty Summary Table

Violation	Penalty
Late filing of VAT return	Rs 2,000 + 10% of tax due
Late payment	5% + 1% interest per month
Failure to register when required	10% of tax due
Issuing invalid VAT invoice	Rs 20,000 per invoice
Failure to keep proper records	Rs 50,000
VAT evasion/fraud	100-200% of tax evaded + possible prosecution

"We've seen businesses shut down because of accumulated VAT penalties," says Priya Ramdin. "A client came to us owing Rs 800,000 in VAT penalties and interest - more than their annual profit. It started with just missing a few monthly returns. Don't let it snowball. If you miss a deadline, file immediately and pay the penalty. It only gets worse."

VAT Refunds {#vat-refunds}

If your input tax consistently exceeds output tax, you can claim VAT refunds from MRA.

Who Gets Refunds?

Common refund scenarios:

1. Exporters - charge 0% VAT on sales but pay 15% on inputs
2. New businesses - large startup capital purchases before significant sales
3. Businesses with seasonal sales - low sales months with ongoing expenses
4. GBC companies - supplies to non-residents at 0%, pay VAT on local expenses

Refund Process

Option 1: Carry Forward

• Leave refund position on your VAT account
• Offset against future VAT liabilities
• No action needed, happens automatically

Option 2: Claim Refund

• Apply for refund via MRA portal
• MRA conducts verification (may include audit)
• Refund issued by cheque or bank transfer

Refund timeline:

• Standard refunds: 3-6 months from claim
• Expedited refunds (exporters): 1-2 months
• First-time refunds: Longer (6-12 months) due to full audit

Documentary Requirements for Refund

MRA may request:

• All purchase invoices for input tax claimed
• Sales invoices showing zero-rated supplies
• Shipping/export documents
• Bank statements showing payments
• Stock reconciliation
• Accounting records

"Refund claims trigger scrutiny," warns Priya Ramdin from Island Accounting Services. "MRA will audit your records comprehensively. This is why proper bookkeeping and invoice management from day one is critical. We prepare refund applications with full documentation packages - this speeds up approval significantly."

Refund Strategy

For consistent refund positions (exporters):

• Apply for refunds quarterly rather than monthly (reduces administrative burden)
• Maintain impeccable records to expedite processing
• Consider using refund position to pay other MRA taxes (income tax, PAYE)

For one-time refund positions (capital purchases):

• Consider carrying forward to offset next few months rather than claiming
• Avoids triggering full audit
• Faster access to funds (via reduced future payments)

Professional Assistance with Refunds

Given the complexity and scrutiny of VAT refund claims, most businesses use professional assistance:

Services included:

• Review eligibility for all input tax claimed
• Compile complete documentation package
• Prepare refund application with supporting schedules
• Liaise with MRA during verification
• Attend audit meetings
• Follow up on refund status

Typical cost: Rs 10,000-30,000 depending on refund amount and complexity

Island Accounting Services VAT refund specialists can:

• Conduct pre-claim audit to identify issues before MRA does
• Maximize allowable input tax through proper analysis
• Handle entire refund process from application to receipt
• Reduce refund processing time by 30-50% through proper preparation

FAQ {#faq}

What is the VAT registration threshold in Mauritius?

Rs 6 million annual turnover. You must register within 21 days of exceeding this threshold in any 12-month period.

Can I register for VAT voluntarily if below the threshold?

Yes, if you make taxable supplies (standard-rated or zero-rated). You cannot register if you only make exempt supplies.

How much does VAT registration cost?

VAT registration with MRA is free. Professional assistance costs Rs 3,000-8,000 for registration and system setup.

What is the VAT rate in Mauritius?

Standard rate: 15% (most goods and services)
Zero rate: 0% (exports, basic foodstuffs, certain medical supplies)
Exempt: No VAT (financial services, education, medical services, long-term residential rent)

When are VAT returns due?

21st of the month following the return period. January VAT is due by February 21.

Can I file VAT returns quarterly instead of monthly?

Yes, if your annual turnover is below Rs 10 million, you can apply for quarterly filing.

What happens if I file my VAT return late?

Penalty of Rs 2,000 plus 10% of the VAT amount due, plus 1% interest per month on unpaid amounts.

Can I deduct VAT on all business expenses?

Only on expenses for making taxable supplies, and only if you have valid VAT invoices. Entertainment, personal expenses, and expenses for exempt supplies are not deductible.

How long does it take to get a VAT refund?

Standard refunds: 3-6 months
Expedited (exporters): 1-2 months
First refund claim: 6-12 months (due to comprehensive audit)

Can I cancel my VAT registration?

Yes, if your turnover falls below Rs 6 million and you expect it to stay below for the next 12 months. Apply through MRA portal. Cannot de-register if you have outstanding tax liabilities.

Do I charge VAT to foreign clients?

If you're exporting goods or supplying services to non-residents consumed outside Mauritius, you charge 0% VAT (zero-rated). You still issue a VAT invoice showing 0% rate.

What software should I use for VAT compliance?

Popular options: QuickBooks (Rs 2,500/month), Xero (Rs 2,000/month), Zoho Books (Rs 800/month), Wave (free). Choose software that generates VAT-compliant invoices and VAT reports.

Can MRA audit my VAT returns?

Yes, MRA can audit VAT returns within 6 years of filing. They can request all supporting documents, visit your premises, and interview staff. Maintain all records for at least 7 years.

What if I make both VAT-able and exempt supplies?

You must apportion input tax based on the proportion of taxable supplies. Example: If 80% of revenue is taxable, you can claim 80% of input tax on mixed expenses. Requires proper documentation and calculations.

How do I charge VAT on deposits and advance payments?

VAT is due when you receive payment or issue invoice, whichever is earlier. If you receive a 50% deposit, you must account for VAT on that 50% in the period received.

Get Expert VAT Support

VAT compliance doesn't have to be complicated or stressful. With proper systems and professional support, you can stay compliant, maximize your input tax recovery, and avoid penalties.

For ongoing VAT compliance and return filing:

Island Accounting Services specializes in VAT compliance for Mauritian businesses. Their technology-enabled approach includes cloud accounting setup, automated compliance reminders, and expert review of every return before filing.

Services include:

• Monthly/quarterly VAT return preparation and filing
• Input tax maximization review
• VAT registration and de-registration
• VAT refund claim preparation
• MRA audit support
• Training for your accounting staff

Packages from Rs 3,500/month with on-time filing guarantee.

For VAT structure and planning advice:

Mauritius Business Law Associates provides VAT advisory services including:

• VAT registration strategy (timing, voluntary vs mandatory)
• Contract review for VAT implications
• Restructuring to optimize VAT position
• Representation in VAT disputes with MRA
• Expert opinions on complex VAT treatment

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Last updated: January 2025

This guide provides general information about VAT in Mauritius and should not be considered as tax advice. VAT rules can change. Always consult with licensed tax professionals for your specific situation.