- Mauritius announced changes to the VAT regime in the 2025-26 Budget
- Zero VAT rate for fruit and vegetable purees for infants, canned vegetables, frozen packed vegetables, and hairdressing services
- VAT registration threshold lowered from MUR6m to MUR3m from October 1, 2025
- Pleasure craft licence holders for business vessels must register for VAT regardless of turnover
- Electronic invoicing required for suppliers with turnover over MUR80m during 2025-26
- VAT on specified digital services from foreign suppliers from January 1, 2026
- VAT refund scheme for residential construction or purchase withdrawn from June 30, 2025
- No VAT on import of capital goods worth MUR500,000 or more
- Input tax credits unavailable for rented parking for non-business motor vehicles
- Reverse charge on foreign services applies to all VAT registered persons
- Place of supply rules clarified for services used in Mauritius
- New powers for tax authority to assess taxpayer liability and penalties for non-compliance
- Offence to fail to provide information or access to electronic devices, punishable by fine and imprisonment
- Penalty rates for non-compliance doubled to MUR100,000 for failure to issue an invoice and keep records
Source: answerconnect.cch.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.
