Mauritius spares small and B2B-only foreign digital suppliers
This change is proposed and is not law. The rules below describe what would change if it is adopted.
- Jurisdiction
- Mauritius
- Tax
- VAT
- Change type
- Digital services
- Status
- Proposed
- Announced
- 19 June 2026
- Authority
- National Assembly of Mauritius / Ministry of Finance
- Verified
- Fetched from official source · high confidence
Foreign suppliers of digital or electronic services to Mauritius: no registration where supplies go exclusively to VAT-registered persons (reverse charge instead), no tax representative, and no compulsory registration below Rs 3 million turnover. Marketplaces and platforms are confirmed in scope. To be enacted via the Finance Bill 2026.
Mauritius's Budget 2026-2027 (delivered 19 June 2026) proposes to ease VAT obligations for foreign suppliers of digital or electronic services: a foreign supplier will not have to register for VAT where it supplies exclusively to VAT-registered persons (reverse charge applies instead), will not have to appoint a tax representative, and will not be compulsorily registrable where its annual taxable turnover is below Rs 3 million; online marketplaces and digital platforms are clarified as within the scope of digital and electronic services. To be enacted through the Finance Bill 2026.
What changed in detail
Mauritius’s Budget 2026-2027 (delivered 19 June 2026) proposes to ease VAT obligations for foreign suppliers of digital or electronic services: a foreign supplier will not have to register for VAT where it supplies exclusively to VAT-registered persons (reverse charge applies instead), need not appoint a tax representative, and is not compulsorily registrable where annual taxable turnover is below Rs 3 million; online marketplaces and platforms are clarified as in scope. The budget also proposes to make electronic books VAT-exempt, zero-rate common salt (local or imported), and zero-rate postal services (previously exempt), and to cut the input-VAT claim period from 36 to 24 months. All are to be enacted via the Finance Bill 2026.
What it means
Mauritius is applying proportionality to its non-resident digital-services VAT — sparing small foreign suppliers and pure-B2B flows from registration is a lighter-touch design than most African peers. The e-book/salt/postal reclassifications are consumer-facing tweaks; the shortened input-VAT claim window is the measure that most affects domestic cash flow.
Proof
A foreign supplier of digital or electronic services will not be required to – (i) register for VAT purposes if he makes taxable supplies exclusively to a VAT registered person. In such a case, the VAT reverse charge mechanism will apply;
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