and international companies respectively); and
the supply of services by a bank in respect of its banking transactions with nonresidents and GBL1 and GBL2 companies.
Input tax allowed
Input VAT, which is related to taxable supplies, is generally deductible, while VAT incurred for purposes of exempt supplies cannot be deducted.
Input tax expressly denied
The following supplies are specifically denied input VAT deduction:
motorcars including vehicles for the transport of not more than nine persons, including the driver, and motorcycles for own use, including rental, lease or repair;
hotel accommodation or lodging;
petroleum oil (except for resale and if used in stationary engines) and petroleum gas used for running motorcars and motorcycles;
goods and services, other than services provided to nonresidents and GBL1 and GBL2 companies, used by banks or services provided by banks; and
services provided by companies other than banks in respect of credit cards and goods and services used by such companies for providing those services.
If goods and services are used to make both taxable and exempt supplies, input tax is deductible proportionally.
Refunds to foreigners
Where credit for any input tax has not been taken in the taxable period in which it ought to have been taken, a registered person may take such credit within a period of 24 months of the date the input tax ought to have been taken.
Tourists may either purchase goods VAT free from suppliers registered under the ‘VAT free supply scheme’ and collect such goods at the air/ sea port on departure or pay VAT and obtain a refund on departure.
Preregistration and post- deregistration VAT
Nonresident businesses cannot get a refund of Mauritian VAT.
The deduction is allowed on a case-by- case basis.
Place, time and value of supply
Place of supply This concept is not defined in the law.
Time of supply
Every person who imports goods, other than exempt goods, is required to pay VAT on such goods.
The reverse charge rule applies to taxable services that are supplied from abroad to a person who is VAT- registered in Mauritius. There are no specific invoicing requirements. The onus is on the beneficiary of the services to account for the VAT.
Goods, other than exempt goods, exported from Mauritius under customs control are zero-rated.
A supply of goods or services is deemed to take place at the time an invoice is issued or at the time payment for the supply is received by the supplier, whichever is the earlier. In the case of a hire purchase agreement, the supply is deemed to take place at the time the agreement is made.
Value of supply
If the supply is for a consideration in money, its value is the amount which, with the addition of the VAT chargeable, is equal to the consideration. In the case of imported goods, the value is the sum of the customs value of the goods and the customs duty and excise duty payable on the goods.
The supply of services to a person who has neither his place of abode nor a permanent establishment in Mauritius is zero-rated, provided that he is outside of Mauritius at the time the services are performed.
Tax periods of one month each apply when the annual turnover of taxable supplies exceeds MRs10 million. Tax periods of three months apply when the annual turnover of taxable supplies does not exceed MRs10 million.