1. As N sends its engineers and technicians to provide services to M, N is a taxable person making taxable supply in Mauritius in the course or furtherance of its business. It will have to apply for VAT registration and upon its registration, it will have to charge VAT on the services rendered to M.
2. To the extent, the services rendered by N to M are from outside Mauritius, that is, its office in France, the reverse charge mechanism shall be applied by M pursuant to section 14 of the VAT Act. Under this provision, it will be deemed as if M had itself supplied the services in Mauritius and that supply were a taxable supply. Consequently, M may claim the VAT on the supply of the services as input tax in accordance with section 21 of the VAT Act. As regard the services that will be provided by the engineers and technicians of N who will be physically present in Mauritius, N will have to register as a VATregistered person in Mauritius by virtue of section 15(2)(i) of the VAT Act and charge VAT on those services rendered to M.
Source: mra.mu
