Key Value Added Tax (VAT) Measures from the Finance Bill 2025:

Written on 08/11/2025
Profmark Team

  1. VAT on Digital Services:

    • Foreign suppliers of specified digital or electronic services must register for VAT and submit returns.
    • Includes services like streaming, e-books, and online advertising.
  2. Zero-Rated Items:

    • Extended to infant food preparations, frozen vegetables, hairdressing services, CCTV systems, and services by licensed shipping agents.
  3. Compulsory VAT Registration:

    • Threshold reduced from Rs6m to Rs3m.
    • Mandatory for foreign suppliers of digital services.
  4. Exemptions:

    • Services offered to foreign vessels by the Mauritius Ports Authority.
    • Projects financed at least 50% by foreign grants or concessionary financing.
  5. VAT Refund Scheme:

    • Refunds available for harvesting services provided to planters, small farmers, or horticulturists.
  6. Fair Share Contribution:

    • Corporates earning over Rs24m annually pay an additional 5% VAT.
    • Banks pay an extra 2.5% on domestic operations.
  7. Removal of Special Levy Cap on Banks:

    • Effective from 1 July 2025, the cap on the levy paid by banks in 2017-2018 is removed.

These measures aim to modernize VAT administration, expand the tax base, and align with the digital economy.