Mauritius halves its compulsory VAT registration threshold to Rs 3 million

What changed in detail

The Finance Act 2025 (Act No. 18 of 2025) was passed by the National Assembly on 1 August 2025 and published in the Legal Supplement to Government Gazette No. 66 on 9 August 2025. Section 61 amends the Value Added Tax Act. Paragraph (t) amends the Sixth Schedule, which sets the turnover above which registration is compulsory, by replacing the figure “6” with “3”. The threshold falls from Rs 6 million to Rs 3 million of annual taxable supplies.

Section 66(1) of the Act lists section 61(t) among the provisions that come into operation on 1 October 2025. They therefore did not take effect on assent.

The same Act set other VAT dates separately. The foreign digital-services rules in s.61(a)–(d) started on 1 January 2026, and several items took effect on 1 October 2025.

What it means

Businesses with taxable turnover between Rs 3 million and Rs 6 million came into compulsory registration from 1 October 2025. That brought a large group of smaller traders and service providers into the VAT net, along with fiscal invoicing and e-invoicing obligations as the MRA’s rollout reaches them.

As of November 2026 the Rs 3 million figure is still the Sixth Schedule threshold. The Finance Act 2026 (Act No. 14 of 2026) did not change it. Instead, from 1 October 2026, it applies the same Sixth Schedule figure to foreign digital-services suppliers (mu-digital-services-easing-enacted-2026).