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Mauritius has announced a major shift in its indirect tax regime. From 1 January 2026, all foreign suppliers of digital and electronic services will be required to register for VAT and charge 15% VAT on supplies to customers in Mauritius – with no turnover threshold.
By Javed Niamut, Partner, Bowmans Mauritius
The Value Added Tax Act 1995 (VAT Act) in Mauritius has been amended by the Finance Act 2025 to introduce Value Added Tax (VAT) on digital and electronic services from foreign suppliers.
From 1 January 2026, all foreign suppliers of digital and electronic services, other than those having a permanent establishment in Mauritius or those who are accounting for such supplies under the reverse charge mechanism, will be required to register for VAT and charge VAT at the rate of 15% on digital and electronic services supplied to recipients in Mauritius.
There is no turnover threshold applicable for this registration.
Digital and electronic services covered
VAT will be applicable on services supplied by a foreign supplier through the internet or dependent on information technology including but not limited to the following:
- supplies of images or texts, such as photographs, screensavers, electronic books and other digitised documents;
- supplies of music, films, television shows, games and programmes on demand;
- supplies of applications, software and software maintenance;
- website supply or web hosting services;
- advertising space on a website;
- online magazines; and
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distance maintenance of programmes and equipment.
Tax representative and reporting
The foreign supplier must appoint a tax representative if its annual taxable supplies exceed MUR 3 million (approx. USD 66 000) to submit their VAT returns and remitting VAT payment to the Mauritius Revenue Authority. The foreign supplier must submit VAT returns and a list of taxable supplies made to Mauritian customers.
The extension of VAT to digital and electronic services supplied by foreign suppliers represents a significant shift in Mauritius’ indirect tax landscape. Foreign suppliers should promptly assess their systems, registration requirements, and compliance processes ahead of the 1 January 2026 commencement date.
