Tax rate by region Mauritius

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VAT on SaaS Services in Mauritius

In Mauritius, SaaS services are subject to the standard VAT rate of 15%. This tax applies to both local and international SaaS providers who sell their services to customers in Mauritius. The VAT is calculated on the total value of the SaaS service, including any applicable fees such as subscription charges and installation fees.

Mauritius

Mauritius implemented a VAT system in 1998 to modernize its tax framework and enhance public revenue.

Official government link: Mauritius Revenue Authority

15.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific digital goods or services have reduced tax rate

Exempted product categories

No specific digital goods or services are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once the threshold has been exceeded

Online registration possible

Yes

Local representative needed

Registration procedure

To register for VAT in Mauritius, businesses must obtain and complete the appropriate application form from the Mauritius Revenue Authority (MRA). There are three form options (VAT1, VAT1A, and VAT1B) based on the company’s annual revenue. Alternatively, businesses can apply through the Corporate and Business Registration Integrated System (CBRIS). Successful applicants will receive a Certificate of Registration from the MRA.

List of digital and electronic services liable for tax

E-books, music downloads, movies, software, video games, cloud computing, web hosting, software as a service (SaaS), streaming services, online advertising, online sales of goods and services.

Penalties

Late filing: A penalty of MUR 2,000 (approximately EUR 42) is imposed for each month the VAT return is late, up to a maximum of MUR 20,000 (approximately EUR 420).
Late payment: A 2% penalty is applied to the total amount due.
Interest: A 1% interest charge is added per month until the full amount is paid.

Registration threshold

MUR 6 million USD 129.500

Filing interval

Monthly

Filing deadline

Bu the 20th day of the month following the reporting period.

E-invoicing requirements

Still being implemented

Record keeping

The following records must be kept for at least 5 years:

Accounting records: These should accurately reflect your financial position and enable the preparation of financial statements.
Invoices: Both sales and purchase invoices should be retained.
Receipts: All receipts for expenses should be kept.
Bank statements: These should be retained to reconcile with your accounting records.
Payroll records: If applicable, these should be maintained.

Effortless Subscription Management and Billing

Registration, Returns, and Record-Keeping

To comply with VAT regulations, SaaS businesses in Mauritius must register for VAT with the Mauritius Revenue Authority (MRA) and file VAT returns on a monthly basis. The VAT returns must be filed by the 20th of the month following the reporting period. Businesses must also keep detailed records of all their sales and purchases for at least five years. These records should include invoices, receipts, bank statements, and any other documents that support their VAT claims.

Mastering VAT with E-Invoicing and Expert Guidance

To ensure accurate and timely VAT compliance, SaaS businesses in Mauritius are encouraged to adopt e-invoicing solutions. E-invoicing facilitates the automated generation and exchange of invoices, reducing the risk of errors and streamlining the VAT compliance process. Additionally, it is advisable for businesses to seek guidance from qualified tax professionals who can provide tailored advice on managing their VAT obligations.

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