Mauritius VAT Ruling Clarifies Transition from Deferred Duty and Tax Regime for Tourist Area Outlet

• The Mauritian Official Gazette published VAT Ruling No. 120 on March 29.
• The ruling clarifies VAT treatment for transitions from the Deferred Duty and Tax regime.
• The taxpayer is a company with an outlet in a tourist area of Mauritius.
• The company plans to surrender its DDTS certificate and transition to a VAT-free or VAT-refund basis.
• A one-off VAT payment on existing inventory is required for the transition.
• The Revenue Authority clarified the following: 1. No repayment of the one-off VAT amount after surrendering the certificate. 2. No repayment of excess VAT in subsequent taxable periods. 3. Excess VAT should be carried forward to the next taxable period for offset against future output VAT, unless a repayment claim is made.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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