Mauritius VAT Guide 2026

Overview — VAT in Mauritius

Mauritius introduced VAT in 1998, replacing the former sales tax system. The VAT is governed by the VAT Act 1998 and administered by the Mauritius Revenue Authority (MRA). The standard rate is 15%, applied to the taxable value of supplies. Mauritius follows a credit-invoice VAT system, allowing registered businesses to deduct input VAT on business purchases from output VAT collected. The VAT system is fully digitalised through the MRA e-Services platform.

Standard Rate — 15%

The standard VAT rate of 15% applies to most supplies of goods and services in Mauritius. This includes retail sales, professional services, construction, telecommunications, utilities, and entertainment. VAT is calculated on the ex-VAT price, and businesses display prices as VAT-inclusive for consumer transactions. The standard rate applies to both B2B and B2C supplies unless specifically exempted or zero-rated.

Zero-Rated Supplies — 0% (Exports)

The following supplies are zero-rated (0% VAT) in Mauritius, meaning no VAT is charged but input VAT can still be recovered:

• Exports of goods (including goods exported to the African Free Trade Zone)
• International transport — freight and passenger services to/from Mauritius
• Services rendered to non-residents (certain conditions apply)
• Supply of certain food items (basic staples, bread, rice, flour, cooking oil)
• Supply of agricultural inputs (fertilisers, seeds, pesticides)
• Supply of medical supplies (pharmaceuticals, medical equipment)
• Supply of educational materials (books, school supplies)

Exempt Supplies

The following supplies are exempt from VAT (no VAT charged, and input VAT recovery is not available):

• Financial services (banking, lending, insurance, currency exchange)
• Residential property rental (long-term residential leases)
• Sale of residential property (existing residential buildings)
• Educational services (school and university tuition)
• Medical services (hospital and clinical services)
• Postal services (basic postal services)

Registration Threshold — MUR 6 Million

Businesses with annual taxable turnover exceeding MUR 6 million must register for VAT. Registration is mandatory once the threshold is crossed, and the business must charge VAT from the date of registration. Businesses below the threshold may voluntarily register, which allows them to recover input VAT. Non-resident businesses supplying taxable services in Mauritius must register regardless of turnover. Registration is made through the MRA e-Services portal.

VAT Filing — Monthly and Quarterly

VAT returns are filed based on turnover level:

• Monthly: Taxpayers with taxable turnover exceeding MUR 10 million per year must file monthly VAT returns, due by the 25th of the following month
• Quarterly: Taxpayers with turnover between MUR 6 million and MUR 10 million may file quarterly returns, due by the 25th of the month following the quarter

Returns are submitted electronically through the MRA e-Services platform. Late filing attracts a penalty of MUR 5,000 plus interest at 0.5% per month on any unpaid balance. VAT refunds for credit positions (e.g., exporters) are processed within 30 days for verified claims.

Input VAT Recovery

Registered businesses can recover input VAT on purchases and expenses used for taxable supplies (including zero-rated supplies). Blocked input VAT (not recoverable) includes VAT on:

• Motor vehicles (except for resale or hire)
• Entertainment and hospitality expenses (except staff entertainment)
• Club membership fees
• Passenger transport services

FAQs

Is there a reduced VAT rate for tourism or hotel services?

No, Mauritius does not have a reduced VAT rate for tourism. Hotels and tourist services are subject to the standard 15% VAT. However, exports of services (including certain tourism-related services to non-residents) may qualify for zero-rating under specific conditions.

Can I recover VAT on imports as a registered business?

Yes, VAT paid on imports of goods and services is recoverable as input VAT, provided the imports are used for making taxable supplies. VAT on imports is collected by the Mauritius Revenue Authority (MRA) at the point of entry.

What are the penalties for late VAT filing?

Late filing attracts a penalty of MUR 5,000 per return. Late payment of VAT carries interest at 0.5% per month (or part thereof) on the unpaid amount. The MRA may also impose additional penalties for persistent non-compliance.

Disclaimer

This guide provides general information about Mauritian VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Mauritian tax advisor or the MRA directly for advice specific to your business. InvestmentKit does not provide tax advice.