A common worry before any budget is a VAT hike. The Budget 2026–2027 delivered good news on that front — the VAT rate stays at 15% — but it made a number of detailed rule changes, especially for digital services and foreign suppliers. This guide walks through what changed.
For the basics of registering, see our existing guide on VAT registration in Mauritius and the Rs 3m VAT threshold.
The rate stays at 15%
The Government confirmed it is not increasing the VAT rate. Despite a tight budgetary situation, the standard rate remains 15%.
New rules for foreign digital-service suppliers
The most significant changes target cross-border digital and electronic services. A foreign supplier of digital or electronic services will not be required to:
- register for VAT if they make taxable supplies exclusively to a VAT-registered person — in which case the VAT reverse charge mechanism applies;
- appoint a tax representative for the submission of returns and remittance of VAT;
- compulsorily register where annual turnover of taxable supplies is less than Rs 3 million per annum; and
- provide details of the person to whom taxable supplies are made in Mauritius that would breach confidentiality requirements in their own jurisdiction.
It is also clarified that online marketplaces and digital platforms are included in the coverage of digital and electronic services.
Exemptions and zero-rating
| Item | New treatment |
|---|---|
| Electronic books | Exempt for VAT purposes |
| Common salt (local or imported) | Zero-rated |
| Postal services | Zero-rated (instead of exempt) |
| Photovoltaic systems and components | Not subject to VAT |
| NGO/NPO donated goods (NSIF Funding Instrument 1) | Exempt from VAT on goods donated from abroad |
Other notable changes
- Where a VAT-registered person provides accommodation in a hotel or tourist residence, they must remit 50% of VAT in foreign currency.
- Payment services to Global Business Licence holders by a Bank of Mauritius-licensed payment service provider are zero-rated.
- Supplies by FSC management-licence holders to Global Business companies and certain trusts/foundations become VAT exempt (instead of zero-rated).
- VAT exemption on accommodation is extended to qualifying international sports events and international television and cinema awards events.
VAT ruling fees increase
The fees payable for a VAT ruling rise significantly:
| Applicant | Old fee | New fee |
|---|---|---|
| Individual | Rs 3,000 | Rs 5,000 |
| Companies, Société, trusts | Rs 15,000 | Rs 75,000 |
Tax administration tightening
The time period for requesting unclaimed input VAT credits is reduced from 36 months to 24 months. New penalties also apply for failing to issue fiscal invoices (Rs 5,000 per day, capped at Rs 1,000,000) and for failing to use the e-invoicing system where required.
What to do
If you sell digital services into Mauritius, or buy them from abroad, review whether the reverse charge now applies to you and whether registration is still required. For local businesses, check input-VAT timing against the new 24-month window. Our accounting service and directory of verified accountants can help. See also the Budget 2026–2027 business guide.
Frequently Asked Questions
Is VAT increasing in Mauritius in 2026?
No. The Government confirmed the VAT rate is not increasing — it remains at 15%.
Do foreign digital-service suppliers have to register for VAT in Mauritius?
Not always. A foreign supplier is not required to register if it makes taxable supplies exclusively to a VAT-registered person, in which case the reverse charge mechanism applies. Suppliers with annual taxable turnover below Rs 3 million are also not compelled to register.
Are e-books taxed under the new rules?
No. Electronic books are now exempt for VAT purposes under the Budget 2026–2027 changes.
How much does a VAT ruling cost now?
The VAT ruling fee rises to Rs 5,000 for an individual and Rs 75,000 for companies, sociétés and trusts.
Are online marketplaces covered by the digital services rules?
Yes. It is clarified that online marketplaces and digital platforms are included within the coverage of digital and electronic services.