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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.
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Zero-Rated Items:
- Extended to infant food preparations, frozen vegetables, hairdressing services, CCTV systems, and services by licensed shipping agents.
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Compulsory VAT Registration:
- Threshold reduced from Rs6m to Rs3m.
- Mandatory for foreign suppliers of digital services.
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Exemptions:
- Services offered to foreign vessels by the Mauritius Ports Authority.
- Projects financed at least 50% by foreign grants or concessionary financing.
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VAT Refund Scheme:
- Refunds available for harvesting services provided to planters, small farmers, or horticulturists.
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Fair Share Contribution:
- Corporates earning over Rs24m annually pay an additional 5% VAT.
- Banks pay an extra 2.5% on domestic operations.
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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.