Returns and payment of VAT
VAT returns must be made monthly or quarterly, depending on the person’s tax periods, and must be filed within 20 days. VAT returns may be filed electronically.
VAT is due when the VAT return has to be filed. VAT can be paid in cash, by cheque or bank transfer.
Interest and penalties
Penalties and interest are charged as follows:
non-submission of the VAT return
penalty of MRs2,000 per month or part of the month until the return is submitted, provided that the total surcharge does not exceed MRs20,000;
VAT not paid by the due date – fixed penalty of 5% of the unpaid VAT in addition to interest at the rate of 1% of the VAT per month or part of the month until payment;
failure to join the electronic system when required – penalty of MRs5,000 per month or part of the month, subject to a maximum penalty of MRs50,000.
Amounts owing by the VAT Authority are normally carried forward. A refund is only available where the input tax relates to capital goods and exceeds MRs100,000. A refund may also be made when the business is mainly engaged in making zero-rated supplies.
Objections and appeals
Where a person assessed for VAT is dissatisfied with the assessment, he may lodge an objection with the Mauritius Revenue Authority within 28 days of the date of the assessment. Upon determination of the objection, the person may, if he is still dissatisfied, make representations to the
Assessment Review Committee (ARC). It is also possible to appeal to the Supreme Court against the decision of the ARC.
An assessment in respect of a taxable period can only be made within five years from the last day of the taxable period. A claim for input tax can be made within 24 months of the date the input tax was paid.
A registered person making taxable supplies to another registered person is required to issue a VAT invoice for such supplies. Invoices must be issued by the supplier of the goods or services or his agent.
The following information should be specified on the invoice:
the words ‘VAT invoice’ in a prominent place;
the name, business address and the VAT registration number of the supplier;
the serial number and date of issue of the VAT invoice;
the quantity and description of the goods or the description of the services;
the value of the supply exclusive of VAT;
the amount of VAT chargeable and the rate applied; and
the name, address and VAT registration number of the recipient.
Invoices may be issued electronically, provided the information required to be specified on an invoice is contained on the electronic invoice. Invoices may be issued in either French or English.
Where invoicing is done in a foreign currency, only the VAT on the invoice should be converted into local currency, at the rate applicable on the date of the invoice.
Credit notes and debit notes
Credit notes and debit notes are taken into account through adjustments. Documentary evidence may be required by the MRA.
Additional export documentation
The following information should be specified on the invoice for export purposes:
name, business address, and VAT registration number of the supplier;
name and address of the recipient;
quantity and description of goods/ services supplied and the value thereof; and
VAT at zero per cent.
The supplier must keep legible copies of VAT invoices and other records, either on computer or otherwise, in chronological order for a period of at least five years after the completion of the transaction. Records may be kept solely in electronic form, but cannot be kept outside Mauritius.
Specific VAT rules
VAT adjustments may be made in respect of any bad debts written off during the tax period.
Land and buildings
No VAT is chargeable on the transfer of land and buildings, except land with any building or part of a building, apartment, flat or tenement together