Mauritius Budget 2025-26: VAT on Digital Services and Key Tax Measures Announced

The Mauritian government released the National Budget 2025-26 on June 5, 2025.
The budget aims to promote export-oriented reindustrialisation, enhance economic diplomacy, and develop emerging economic sectors.
VAT will be removed for specific infant foods, canned and frozen packed vegetables, CCTV systems, and hairdressing services.
Excise duties on alcoholic and tobacco products increased by 10% from June 6, 2025.
Excise duty on sugar content in sugar-sweetened products increased from 6 cents to 12 cents per gram.
Mandatory VAT registration threshold lowered from MUR 6 million to MUR 3 million, effective October 1, 2025.
A 15% Qualified Domestic Minimum Top-Up Tax will be introduced for large multinational enterprises.
From January 1, 2026, specified digital or electronic services by foreign suppliers will be subject to VAT.
E-invoicing system will be extended to suppliers with an annual turnover exceeding MUR 80 million.
Additional guidance on the Qualified Domestic Minimum Top-Up Tax and VAT on digital services is expected.

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.