Effective Date
- January 1, 2026
What’s Being Taxed?
The VAT applies to non-resident suppliers of digital or electronic services to Mauritian consumers. This includes:
- Streaming Services: Netflix, Amazon Prime Video, Disney+, Spotify, YouTube Music
- Gaming Platforms: PlayStation Plus, Xbox Game Pass
- Software & Cloud Services: Microsoft 365, Canva Pro, ChatGPT Plus
- Booking Platforms: Airbnb,
- E-learning & Other Digital Tools
VAT Rate
- 15%, aligned with Mauritius’ standard VAT rate
Registration Threshold
- Foreign suppliers must register for VAT if annual sales to Mauritian consumers exceed MUR 6 million (approx. €120,000)
B2B Transactions
- Zero-rated under reverse charge mechanism
- However, foreign suppliers must still register even if they only serve businesses
Why Is Mauritius Doing This?
- Boost Foreign Reserves: Many digital services are paid in foreign currencies
- Level Playing Field: Local providers already charge VAT; this ensures fair competition
- Regulate the Digital Economy: Aligns Mauritius with global trends in digital taxation
Impact on Users
| User Type | Impact |
|---|---|
| Consumers | Subscription costs will rise by 15% |
| Businesses | Higher operational costs for cloud/software tools |
| Tourists | VAT added to bookings via platforms like Airbnb |
Source Mauritiusbusinessresource.mu
