If your business buys software subscriptions, streaming services, cloud hosting, or any other digital service from a foreign provider, the rules changed on 1 January 2026. Mauritius now requires foreign suppliers to register for VAT and charge 15% on digital services supplied to Mauritian consumers.

This is not a suggestion. It is law. The MRA has published guidance, and enforcement has begun.

What counts as a foreign digital service?

The definition is broad. Section 14A of the VAT Act covers services delivered electronically or through a digital platform. Examples include:

  • Streaming subscriptions (Netflix, Spotify, YouTube Premium)
  • Software as a Service (SaaS) products like accounting tools, CRM platforms, and design software
  • Cloud hosting and storage services
  • Online courses and digital educational content
  • Digital publications and e-books
  • App store purchases

If the service is delivered online and the supplier is outside Mauritius, it falls under the new rules.

What foreign suppliers must do

Foreign suppliers selling digital services to Mauritian consumers have three obligations:

1. Register for VAT with the MRA. There is no turnover threshold for foreign suppliers. Even if a company earns Rs 100 from Mauritius, it must register. The MRA has made this clear in its Foreign Supplier Guide.

2. Charge 15% VAT on sales to Mauritian consumers. The standard rate applies. There are no reduced rates for digital services. The supplier must show the VAT amount on invoices or receipts.

3. File VAT returns and pay the tax to the MRA. Returns are filed quarterly. Payment can be made in foreign currency. The MRA accepts USD, EUR, GBP, SGD, ZAR, and CHF.

What about the tax representative?

If the foreign supplier's turnover in Mauritius exceeds Rs 3 million per year, it must appoint a tax representative. This is a person or firm in Mauritius who acts as the point of contact with the MRA and takes responsibility for the supplier's VAT obligations.

For smaller suppliers, a tax representative is not mandatory but can still be useful. Dealing with the MRA from overseas is not always straightforward.

What this means for Mauritian businesses

If you run a business in Mauritius and buy digital services from abroad, you should check whether your suppliers are complying. If they are not charging VAT, you may face unexpected costs or compliance issues down the line.

Some practical steps:

  • Audit your subscriptions. List every foreign digital service your business pays for. Check whether VAT is being charged.
  • Talk to your suppliers. Many foreign platforms have updated their billing to include Mauritius VAT. Others have not. Ask.
  • Keep records. The MRA may ask for evidence that you have done your due diligence. Save invoices and correspondence.
  • Budget for the cost. If your suppliers start charging 15% more, factor that into your operating expenses.

What this means for consumers

Individual consumers are not directly affected. The obligation falls on the foreign supplier. However, some suppliers may pass the cost on through higher prices. If your Netflix subscription goes up by 15%, this is why.

How to verify compliance

The MRA maintains a register of registered foreign suppliers. If you want to check whether a supplier is registered, you can search the MRA's online portal. If a supplier you use is not registered, you can report them to the MRA.

Frequently asked questions

Does this apply to free services? No. VAT is only charged on taxable supplies. If a service is genuinely free, there is no VAT liability. However, many "free" services are funded through advertising or data collection, and the MRA may take a view on whether a supply has taken place.

What if I pay through a platform like Apple or Google? The platform may be the supplier for VAT purposes. Apple, Google, and other major platforms have generally updated their billing to include Mauritius VAT. Check your receipts.

Is there a minimum threshold for foreign suppliers? No. The MRA requires registration regardless of turnover.

Can I claim input VAT on foreign digital services? Yes, if the services are used for business purposes and you are VAT-registered yourself. You can reclaim the VAT on your next return.

This article is for general information only. For advice on your specific situation, consult a tax professional registered in Mauritius.