New Regime Extends VAT to Overseas Digital Service Providers
Mauritius will begin applying value-added tax (VAT) to digital and electronic services supplied by foreign providers from 1 January 2026, following amendments to the country’s VAT Act aimed at capturing revenue from the growing digital economy.
Under a new Section 14A of the VAT Act, digital and electronic services supplied from outside Mauritius to customers located in the country will become subject to VAT at a rate of 15%, according to guidance published by the Mauritius Revenue Authority (MRA).
The measure expands the scope of the VAT system to include foreign suppliers that previously fell outside the country’s indirect tax framework.
Mandatory Registration for Foreign Suppliers
The MRA said foreign suppliers of digital and electronic services will be required to register for VAT regardless of their turnover levels.
A foreign supplier is defined as a person or entity that does not have a permanent establishment in Mauritius or whose place of abode is outside the country.
Once registered, foreign providers must charge VAT on taxable digital services supplied to customers in Mauritius, collect the tax, file VAT returns and remit the VAT collected to the tax authority.
Tax Representative Requirement for Larger Businesses
Under the new rules, foreign suppliers whose taxable turnover in Mauritius exceeds, or is expected to exceed, MUR 3 million must appoint a tax representative with a permanent establishment in Mauritius.
The MRA has introduced a simplified registration process designed specifically for non-resident digital service providers. Businesses can initiate registration by submitting corporate and contact information directly to the tax authority.
Monthly or Quarterly VAT Compliance
Registered suppliers will be required to submit VAT returns electronically and provide details of taxable supplies made to persons in Mauritius.
According to the MRA, VAT returns may be filed on a monthly or quarterly basis, depending on the requirements of the VAT Act. VAT payments must generally be remitted within 20 days following the end of the relevant taxable period.
To facilitate compliance by overseas businesses, Mauritius will accept VAT payments in several foreign currencies, including U.S. dollars, euros, pounds sterling, Singapore dollars, South African rand and Swiss francs.
Part of Global Trend in Digital Taxation
The introduction of VAT obligations for non-resident digital service providers brings Mauritius in line with a growing number of jurisdictions that have expanded indirect tax rules to cover cross-border digital services.
Governments worldwide have increasingly sought to ensure that foreign providers of streaming services, software, online platforms, cloud computing and other digital products collect and remit consumption taxes in the jurisdictions where customers are located.
Source
This article is based on guidance published by the Mauritius Revenue Authority (MRA) regarding the implementation of Section 14A of the Value Added Tax Act, which extends VAT to digital and electronic services supplied by foreign providers to customers in Mauritius from 1 January 2026.