Mauritius requires foreign digital-service suppliers to register for VAT regardless of turnover

What changed in detail

Section 61 of the Finance Act 2025 (Act No. 18 of 2025), gazetted on 9 August 2025, rewrites how the Mauritius VAT Act treats non-resident digital suppliers.

• s.61(a) defines a “foreign supplier” as a person with no permanent establishment in Mauritius or with its place of abode outside Mauritius, who supplies digital or electronic services to a person in Mauritius. A “digital or electronic service” is a Part III, Tenth Schedule service supplied over the internet or that depends on information technology.
• s.61(b) lets a foreign supplier paid in a listed foreign currency file and pay in that currency.
• s.61(c) replaces sections 14A and 14B. VAT is charged on these services. A foreign supplier above the Sixth Schedule threshold must appoint a tax representative with a permanent establishment in Mauritius. Any two non-contradictory indicators, such as billing address, bank location, IP address or phone country code, place the customer in Mauritius.
• s.61(d) adds section 15(2)(a)(iii), which makes registration compulsory for these supplies “irrespective of his turnover of taxable supplies”.

Section 66(10) brings all of these into operation on 1 January 2026.

What it means

From 1 January 2026, any foreign digital-service supplier with Mauritian customers had to register, whatever its sales. Those above the threshold also had to appoint a local tax representative.

That position has since been eased. The Finance Act 2026 (Act No. 14 of 2026) repealed the tax-representative requirement on publication, 13 August 2026 (mu-digital-tax-representative-repealed-2026). From 1 October 2026 it replaced “irrespective of his turnover” with the Sixth Schedule turnover threshold, and it exempts suppliers who sell only to VAT-registered persons (mu-digital-services-easing-enacted-2026). This record describes the rule as it stood from January to September 2026.