Mauritius raises the VAT Act penalty ceiling from Rs200,000 to Rs500,000
This page records one dated change. For the rules in Mauritius as they stand today, see the Mauritius guide →
- Jurisdiction
- Mauritius
- Tax
- VAT
- Change type
- Compliance
- Status
- In force
- Impact
- Plan ahead
- Announced
- 13 August 2026
- Effective
- 13 August 2026
- Instrument
- MU-FA-2026
- Authority
- Mauritius Revenue Authority
- Systems
- Reporting
- Verified
- Fetched from official source · high confidence
Persons subject to a penalty under sections 32(4) or 32A(3) of the Mauritius VAT Act — the general penalty provisions those sections attach to non-compliance.
Note that the maximum penalty under sections 32(4) and 32A(3) of the Mauritian VAT Act has risen from 200,000 to 500,000 rupees, and factor the higher exposure into your compliance risk assessment.
Reporting
Sections 25(l) and 25(m) of the Finance Act 2026 (Act No. 14 of 2026), assented to on 12 August 2026 and gazetted on 13 August 2026, amend sections 32(4) and 32A(3) of the Value Added Tax Act by deleting the words 200,000 rupees and replacing them with the words 500,000 rupees, raising the maximum penalty under both provisions.
What changed in detail
Sections 25(l) and 25(m) of the Finance Act 2026 (Act No. 14 of 2026), assented to on 12 August 2026 and gazetted on 13 August 2026, amend sections 32(4) and 32A(3) of the Mauritius Value Added Tax Act by deleting the words “200,000 rupees” wherever they appear in those subsections and replacing them with “500,000 rupees.” The maximum penalty under both provisions rises accordingly, effective 13 August 2026.
What it means
This is a straight 2.5x increase to the ceiling on two of the Act’s general penalty provisions, with no change to what triggers them. Anyone who has priced VAT compliance risk in Mauritius against the old Rs200,000 cap should re-run that assessment against Rs500,000 — the exposure per contravention is now more than double.
Proof
(l) in section 32, in subsection (4), by deleting the words "200,000 rupees" and replacing them by the words "500,000 rupees"; (m) in section 32A, in subsection (3), by deleting the words "200,000 rupees" and replacing them by the words "500,000 rupees";
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