Seychelles VAT Guide: 15% Standard Rate 2026
Seychelles applies Value Added Tax (VAT) at a standard rate of 15% on most goods and services, with 0% for exports and certain international services. The VAT system is administered by the Seychelles Revenue Commission (SRC). Here is how Seychelles VAT works in 2026.
VAT in Seychelles is governed by the VAT Act and is administered by the SRC. Businesses with annual taxable turnover exceeding SCR 1,000,000 must register for VAT. Small businesses below this threshold may voluntarily register. VAT returns are filed monthly. Corporate tax overview →
Real-world example: A Beau Vallon hotel charges SCR 50,000 for a 5-night stay. VAT at 15% = SCR 7,500, total invoice SCR 57,500. A restaurant meal of SCR 1,000 includes VAT at 15% = SCR 130.43. An export sale of goods to Mauritius is rated at 0%, allowing the exporter to reclaim input VAT on related costs. Compare to Mauritius at 15% and Reunion at 8.5%. Cross-border VAT rules →
VAT Rates in Seychelles
- 15% (standard rate): Most goods and services including retail, restaurants, professional services, electronics, and consumer goods
- 0% (zero rate): Exports of goods, international transport, supplies to approved international organisations, and certain basic food items
- Exempt: Financial services (banking, insurance), education, healthcare, residential rental, and postal services
The zero rate on exports ensures Seychelles exporters are competitive internationally. Unlike some other jurisdictions, Seychelles does not have a reduced rate for tourism.
VAT Registration
- Mandatory registration: Annual taxable turnover exceeds SCR 1,000,000
- Voluntary registration: Businesses below the threshold may opt to register
- Non-resident registration: Foreign businesses supplying taxable goods or services in Seychelles must register
- Group registration: Related entities may register as a VAT group
Registration is done through the SRC online portal. VAT numbers follow a standard format. Failure to register when required can result in penalties and back-tax assessments.
VAT Compliance and Filing
- Filing frequency: Monthly for all registered businesses
- Filing deadline: By the 25th of the following month
- Payment deadline: Same as filing deadline — VAT due must be paid by the 25th
- Electronic filing: All VAT returns must be filed electronically through the SRC e-Tax portal
- Records: Businesses must maintain VAT invoices, receipts, and accounting records for 5 years
Late filing incurs penalties. Late payment incurs interest at the statutory rate. The SRC conducts regular VAT audits.
VAT Invoicing
All VAT-registered businesses must issue tax invoices for taxable supplies. Key requirements:
- Tax invoices must include seller/buyer details, VAT number, date, description, amount, VAT rate, and VAT amount
- Simplified invoices are permitted for retail transactions below SCR 1,000
- Invoice issuance must be in Seychelles Rupees (SCR). Foreign currency transactions must be converted at the SRC exchange rate
- Credit notes and debit notes must reference the original invoice
Can non-resident businesses reclaim Seychelles VAT?
Yes. Non-resident businesses not registered for VAT in Seychelles may reclaim VAT incurred on business expenses through a refund procedure. The process requires a reciprocal arrangement with the applicant's home country tax authority.
What is the penalty for late VAT filing?
Late VAT filing penalties range from SCR 1,000 to SCR 10,000 depending on the delay. Interest on late payment accrues at the prescribed rate. Repeated violations may result in increased penalties.
Are digital services subject to VAT?
Yes. Digital services provided by non-resident companies to Seychelles consumers are subject to 15% VAT. Non-resident digital service providers may need to register for VAT in Seychelles.