Budget imposes 15% VAT obligations on non-resident digital services and platforms
The Indian Ocean Island state of Mauritius introduced legislation to impose its Value Added Tax on non-resident suppliers of digital or electronic services to consumers. This is contained within the Finance Act 2026, approved on 12 August 2026.
Which digital and electronic services subject to VAT?
VAT will be charged on cross-border digital outputs delivered remotely by non-resident providers. This covers any service accessed online or reliant on electronic networks, for example:
- Supplies of images or texts, such as photographs, screensavers, electronic books and other digitized documents
- Supplies of music, films, television shows, games and programmes on demand
- Supplies of applications, software and software maintenance
- Website supply or web hosting services
- Advertising space on a website
- Online magazines
- Distance maintenance of programmes and equipment
Non-resident digital service providers no longer must appoint a fiscal representative in country.
From 1 October 2026, B2B transactions are zero-rated, allowing the resident business to report the transaction via the reverse charge. However, providers cannot avoid VAT registration if they only supply B2B transactions – they must VAT register to report the sales.
The current VAT rate in Mauritius is 15%. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
VAT registration and compliance
The Mauritius Revenue Authority now offers an VAT registration – although there is no online application for this; instead via e-mail with the Revenue Authority..
Once registered, providers will file returns either monthly or quarterly as prescribed by the Revenue Authority. VAT returns and any tax liabilities should be submitted by the 20th of the month following the reporting period.
Determining if Mauritian VAT is due
Non-resident providers may use the following indicators to determine if consumption takes place locally and therefore VAT due:
- the billing address of the person to whom the supply is made;
- the location of the bank from which the payment for the service to the supplier originates;
- the internet protocol or another geolocation method address of the device used by the person to whom the supply is made;
- the international country code provided by the person to whom the supply is made in his contact details (mobile phone or land-based phone); or
- any commercially relevant information
There is a MUR 3 million registration threshold.
