Mauritius VAT Ruling Clarifies Tax Implications for Freeport Zone Manufacturing and Sales Activities

• The Mauritian Official Gazette published VAT Ruling No. 122 on July 5.
• The ruling clarifies VAT implications for manufacturing and sales in the Freeport Zone.
• A heating and air conditioning company plans to manufacture and assemble kits with client-supplied materials.
• The company will resell the kits locally to the client.
• The Revenue Authority clarified that imports of raw materials for local sale are subject to VAT.
• Manufacturing in the Freeport Zone is considered a taxable supply of goods.
• Local sales of the kits are subject to VAT at the rate specified in the Fourth Schedule of the Act.

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.