What You Need to Know About Mauritius Sales Tax (VAT)

Mauritius keeps its standard VAT rate at a competitive 15%, but the compliance landscape changed in January 2026 when digital and electronic services from foreign suppliers became taxable for the first time. Your VAT return, the VAT 3, is filed monthly through the MRA e-services portal. This guide covers registration thresholds, filing deadlines, and the new digital services rules you need to follow.

1. What is VAT?

VAT stands for Value Added Tax. It is a consumption tax charged on most goods and services supplied in Mauritius. The standard rate is 15%. VAT is collected at each stage of the supply chain. The final cost falls on the end consumer. Businesses registered for VAT act as collection agents for the Mauritius Revenue Authority (MRA). Since January 2026, digital and electronic services from foreign suppliers are also subject to VAT.

2. Who does it apply to?

This usually applies to:

Businesses with annual taxable turnover exceeding MUR 3 million
Importers of goods into Mauritius
Suppliers of taxable goods and services
Foreign suppliers of digital or electronic services consumed in Mauritius (since January 2026)
Any business conducting taxable activities above the registration threshold

3. Why does it matter?

Understanding VAT helps you:

Stay compliant with tax laws enforced by the Mauritius Revenue Authority
Avoid penalties and late fees for missed filings
Keep proper records of all taxable transactions
File and pay correctly through the MRA e-services portal
Plan your cash flow better by tracking VAT collected and paid

4. How does it work?

Here's the basic process:

Register for VAT with the MRA once your taxable turnover exceeds MUR 3 million in any 12-month period
Charge VAT at 15% on all taxable supplies you make
Collect VAT from your customers on each sale
Track all input VAT you pay on business purchases
Calculate the difference between output tax (VAT collected) and input tax (VAT paid)
File your VAT 3 return and remit the net amount to the MRA by the due date
If your input tax exceeds your output tax, you can claim a refund

5. What forms are involved?

VAT 3 (VAT Return) - Filed with the MRA to report output and input VAT for each period
VAT Registration Form - Used to register your business for VAT with the MRA
VAT Deregistration Form - Used when your business no longer meets the registration threshold

6. What information do you need?

Before handling VAT, make sure you have:

Your MRA Taxpayer Account Number (TAN)
MRA e-services portal login credentials
A record of all taxable sales and VAT collected
Receipts and invoices for all business purchases showing VAT paid
A breakdown of zero-rated and exempt supplies
Bank statements to reconcile VAT payments
Records of any imports and the VAT paid at customs

7. Important deadlines

Filing frequency: Monthly (or quarterly for smaller businesses)
Payment deadline: The VAT 3 return and payment are generally due by the end of the month following the tax period
Year-end requirements: Ensure all returns are filed and any outstanding VAT is settled

8. Common mistakes to avoid

Failing to register once turnover exceeds the MUR 3 million threshold
Charging VAT on exempt items like basic food staples, medicines, and educational services
Not keeping proper tax invoices for input VAT claims
Missing the filing deadline and incurring a 5% monthly surcharge (up to 100%)
Claiming input tax on non-business expenses or entertainment
Not accounting for VAT on digital services from foreign suppliers (new from January 2026)

9. Simple example

You run a retail shop in Port Louis. In January, you sell MUR 2,000,000 worth of taxable goods.

VAT collected from customers (output tax): MUR 2,000,000 x 15% = MUR 300,000

During the same month, you purchase MUR 1,200,000 in stock from suppliers.

VAT paid on purchases (input tax): MUR 1,200,000 x 15% = MUR 180,000

Net VAT payable to MRA: MUR 300,000 - MUR 180,000 = MUR 120,000

You would file your VAT 3 return and pay MUR 120,000 to the MRA by the end of February.

10. FAQ

Q: What is the current VAT rate in Mauritius? A: The standard VAT rate is 15%. Some goods and services are zero-rated or exempt.

Q: Are digital services subject to VAT? A: Yes, since January 2026, digital and electronic services supplied by foreign providers for consumption in Mauritius are subject to VAT at 15%.

Q: What items are exempt from VAT? A: Exempt items include basic food staples, medical and health services, educational services, residential rent, and certain financial services.

Q: Can I claim back VAT on business expenses? A: Yes, you can claim input tax credits on VAT paid for goods and services used in your taxable business activities.

Q: What happens if I file my VAT return late? A: Late filing attracts a 5% monthly surcharge on the outstanding VAT, up to a maximum of 100% of the tax due.

11. Final takeaway

VAT at 15% is a core part of doing business in Mauritius, and filing your VAT 3 returns on time keeps your business compliant and your cash flow predictable.

Caption

What you need to know about Mauritius VAT: The standard rate is 15%, digital services are now taxable, and VAT 3 returns are filed monthly through the MRA e-services portal.

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