VAT is chargeable on the supply of goods or services at a definite time, called the time of supply. This time of supply becomes the tax point and the supply must be accounted for by reference to that point in time.
VAT on specified digital or electronic services
- Specified digital or electronic services provided by foreign suppliers will be subject to VAT.
- The supplier will also be required to submit a return and list of taxable supplies made after the end of every taxable period.
For any supply of goods or services in Mauritius, the time of supply is deemed to be the earlier of:
a. the time an invoice or a VAT invoice in respect of that supply is issued by
the supplier; or
b. the time payment for that supply is received by him.
Where services are supplied for a continuous period under any enactment or agreement which provides for periodic payments, the services are treated as successively supplied for the relevant parts of the period. Each successive supply is deemed to take place at the earlier of the time the supply is invoiced by the supplier or the time payment for the supply is received.
For period 01 October 2020 to 30 September 2022, where services are provided to a Ministry, Government department, local authority or the Rodrigues Regional Assembly under a construction works contract, the supply shall be deemed to take place at the time payment for that supply is received by the supplier. Construction works means civil construction, including construction or repair of any building, road or other structure or execution of any works contract and includes any mechanical or electrical works.
Where a taxable supply is made under a hire purchase agreement, the supply is deemed to take place at the time the agreement is made.
In the case of a lease agreement, the supply is deemed to take place at the earlier of the time the supply is invoiced by the supplier or the time payment for the supply is received. A person is authorized to charge VAT as from the date of registration shown on the Certificate of Registration.
Payment of tax in foreign currency
- A foreign supplier receiving payment in a foreign currency, shall submit its VAT return and pay any tax specified therein in that currency.
- Where the payment is received in more than one currency, it shall submit its VAT return and pay any tax specified therein in a currency of his choice.
Foreign supplier to charge VAT
- Foreign suppliers must appoint a tax representative with a permanent establishment in Mauritius if required to register and their taxable turnover exceeds the threshold in the Sixth Schedule.
- The tax representative is responsible for filing VAT returns and remitting payments to the MRA.
- A recipient is treated as being in Mauritius if any two of the following indicators confirm:
- 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.
- Foreign suppliers must submit VAT returns and a list of taxable supplies electronically.
- The MRA may, in cases of non-declaration or under-declaration of supplies and overstatement of credit for input tax, make assessments in respect of a period beyond 2 years but not exceeding 4 years.