Business VAT in Mauritius is prepared before the first invoice. In 2026, the registration threshold is Rs 3 million of taxable turnover, the standard rate remains at 15 % and exports of goods or services are, in principle, subject to a zero rate.mra.mu)
For a prospective resident or investor, the main issue is cash flow: VAT collected, VAT deductible, the filing schedule, and potential refunds are not managed in the same way depending on whether your clients are local or foreign. Within the same tax environment, Mauritius also applies a corporate tax, generally at 15 %, and some investors may aim for a permanent residence permit with a minimal investment of USD 375,000 in a qualifying activity.mra.mu)
Key milestones to know in 2026
VAT summary table in Mauritius
| Key point | Applicable rule | Consequences for the company |
|---|---|---|
| Registration required | A company must register if its annual taxable turnover exceeds, or is likely to exceed, a certain threshold. Rs 3 million. Some cases are mandatory even without a threshold.mra.mu) | Registration must be planned in advance of exceeding the threshold, otherwise the risk of penalty increases. |
| Standard rate | The standard VAT rate is 15 % on taxable supplies. | The selling price must include VAT and the invoice must be correctly issued.mra.mu) |
| Exports | Exports of goods and, in general, services from Mauritius are at zero rate. Some local supplies may also be rated zero. | The company can maintain the VAT logic while limiting the VAT charged to its foreign customers. |
| Statements | Beyond Rs 10 million For annual taxable turnover, the declaration is in principle monthly; otherwise it is quarterly. Electronically, the deadline is set at the end of the month following the period concerned.mra.mu) | The pace of accounting management becomes more demanding as the business grows.mra.mu) |
| Recovery | Input tax can be deducted from output tax; the excess can sometimes be carried forward or refunded. | Properly structuring purchases and sales improves cash flow. |
To prepare for your relocation process and better understand the local environment, the Expat Mauritius practical guides can serve as a useful complement to the tax aspect.
When does a company have to register for VAT in Mauritius?
The 2026 threshold of Rs 3 million
Since the changes introduced by the Finance Act 2025, the threshold for mandatory VAT registration has been reduced from Rs 6 million to Rs 3 million. The obligation applies if the annual taxable turnover exceeds, or is likely to exceed, this amount. The measure came into effect on October 1, 2025 and remains the reference to be used in 2026.
How to calculate taxable revenue
To calculate taxable turnover, the value of all taxable supplies delivered across all business locations in Mauritius, including Rodrigues, must be added together, including zero-rate supplies. However, the value of capital goods sold, exempt supplies, and disbursements made on behalf of clients must be excluded. This calculation determines whether the threshold is exceeded.
Cases where registration is mandatory even without a threshold
Some sectors must register even if their turnover remains below the threshold, including several regulated professions, certain financial activities, credit card services, commercial rental of pleasure boats over 12 meters, and, since 2026, foreign providers of digital services provided to people located in Mauritius.
How to register for VAT
The simplest procedure
The MRA allows registration via the simplified online form, via CBRIS when registering the business, or via the manual form downloaded from its website. Once the application is accepted, the MRA assigns a VAT number identical to the TAN, issues a registration certificate, and a distinctive marker to be displayed on the premises.
Information and documents to prepare
- The TAN, BRN and the identity of the person or company to be registered, as this data is used in the electronic form.mra.mu)
- An email address or mobile number, which is mandatory in the simplified form.
- The address of the main place of business, as well as other places of operation if there are several.
- The nature of the activity and the taxable annual turnover bracket, with selection of the corresponding category.
- The contact details of the declarant, and the BRN of the chartered accountant, firm or tax representative if it is he who files the application.
Electronic filing does not require the immediate sending of physical documents, but all information must be completed correctly; the MRA may also request the presentation of the originals if necessary.
Billing, reporting and compliance schedule
From what point onward should VAT be charged?
Once the company is registered, VAT must be charged from the effective date indicated on the registration certificate. The MRA also requires the issuance of compliant VAT invoices, including the essential information: "VAT INVOICE", name, business address, VAT registration number, registration number, sequential number, date, description, sale value, and VAT amount.
Monthly or quarterly declarations
In practice, a company whose annual taxable turnover does not exceed Rs 10 million Tax returns are generally filed quarterly; otherwise, they are filed monthly. If the return and payment are made electronically, the due date is the end of the month following the relevant period for a monthly return, and the end of the month following the quarter for a quarterly return. Zero-balance returns must also be filed when due.
Delays, penalties, and good habits
Failing to meet deadlines is costly: late filing can result in a penalty of Rs 2,000 per month or fraction of a month, capped at Rs 20,000 (Or Rs 5,000 (for a small business), while late payment can incur a penalty of 10 % and interest of 1 % per month or fraction thereof. The MRA also requires written records to be kept for at least five years.
Reclaim the VAT paid on purchases
The input tax / output tax mechanism
The principle is simple: the VAT charged to your customers constitutes the output tax, while the VAT paid on your taxable purchases from VAT-registered suppliers constitutes the input tax. When filing your tax return, you deduct the allowed input tax from the output tax and only remit the balance to the MRA. If the input tax is higher, the excess can be carried forward or refunded in certain cases.
When can I request a refund?
Reimbursement is possible, in particular, if the company makes supplies at a zero rate or if the excess input tax relates to capital goods exceeding a certain amount. Rs 100,000, This includes assets such as buildings, facilities, machinery, or equipment of a capitalized nature. When a company is primarily engaged in zero-rated supplies, it can claim the entire excess; otherwise, the recovery is proportional. The claim is made on the VAT return, and the MRA (Ministry of Revenue and Customs) allows a statutory period of 45 days, with an expedited process that can be reduced to 7 days if certain conditions are met.
The reflexes that secure deduction
- Keep valid VAT invoices and customs documents, as the input tax must be justified.
- Properly allocate purchases related to taxable, exempt, and zero-rated activities to avoid excessive recovery.
- Keep clean and easily auditable records for at least five years, which also facilitates quick reimbursements.mra.mu)
VAT and services sold locally or internationally
When your clients are located in Mauritius
Services used in Mauritius are generally taxable at 15 % if they do not qualify for an exemption. A company that only makes exempt supplies cannot register for VAT; conversely, a mixed company must closely follow the distinction between taxable, exempt and zero-rated activity.
When your clients are abroad
Exports of goods and, in general, services from Mauritius are subject to a zero rate, which is often advantageous for consulting firms, service providers, or internationally focused digital businesses. In practice, if the company is not primarily engaged in zero-rated supplies, the input tax recovery on common costs must be allocated according to the proportion of zero-rated supplies within taxable supplies. The Mauritius Revenue Authority (MRA) also clarifies that certain exempt supplies, when exported, are treated as zero-rate taxable supplies for recovery purposes.
VAT rules are constantly evolving, and the analysis always depends on your business activity, legal structure, and customer mix. This article is for informational purposes only and does not replace personalized tax or legal advice.
FAQ on business VAT in Mauritius
How to register for VAT in Mauritius and what documents are required?
Registration is primarily done online via the MRA's simplified form, or at the time of company formation via CBRIS. Once the application is accepted, the MRA issues a VAT number identical to the TAN and a registration certificate. In practice, you will need to prepare the TAN/BRN, the company or manager's identity, the registered office address, the business activity, the turnover bracket, and a valid contact person. The MRA may request original documents if necessary.
What is the current VAT rate in Mauritius and what are the exemptions or zero rates for exports?
The standard VAT rate is 15 %. Exports of goods and, in principle, services are subject to a zero rate, which is not the same as an exemption. Exempt supplies do not entitle the exporter to VAT on exit, and a company that only makes exempt supplies cannot register for VAT. Certain local supplies are also subject to a zero rate, as listed by law.
What is the turnover threshold for VAT registration obligation in Mauritius in 2026 and how is it calculated?
In 2026, the mandatory threshold is Rs 3 million of annual taxable turnover, or the likelihood that this threshold will be exceeded. For the calculation, taxable supplies made at all places of business in Mauritius, including Rodrigues, must be added together, and zero-rate supplies must be included. However, sales of capital goods, exempt supplies, and disbursements on behalf of customers are excluded from the calculation.
How to recover VAT paid on purchases (input tax) for a Mauritian company and what conditions apply?
Input tax is the VAT paid on your taxable purchases from registered suppliers. It is deducted from the output tax on your tax return. A refund is possible if your return shows an excess of input tax related to zero-rated supplies or capital goods exceeding Rs 100,000. The refund request is made on the tax return, and the MRA (Mauritius Revenue Authority) provides legal processing within 45 days, with an expedited route for well-documented cases.
What is the VAT declaration and deduction procedure when a company provides services to local and international clients from Mauritius?
If the company invoices Mauritian clients, VAT at 15% (%) generally applies to taxable services. If it also serves foreign clients, exported services are usually subject to a zero rate, which can improve VAT recovery on shared costs. VAT returns are filed monthly for annual taxable turnover exceeding Rs 10 million, and quarterly otherwise. Companies must maintain their own records for at least five years.
And now ?
If you are setting up a company, investing, or preparing for your arrival in Mauritius, a VAT assessment beforehand will prevent invoicing errors and refund delays. For a free evaluation of your situation and support tailored to your project, contact Expat Mauritius. If you also wish to check the legal framework of the site, the Legal notices of Expat Mauritius are available online.
