[Global IDT Insights] Mauritius VAT Guide and Netherlands Rate Hike

Editorial Team – [2026] 183 taxmann.com 650 (Article)

Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.

1. Mauritius Issues a VAT Guide for Foreign Suppliers of Digital and Electronic Services

Mauritius has issued a Guide for Foreign Suppliers of Digital and Electronic Services following amendments to the Value Added Tax Act introduced by the Finance Act 2025. The Guide explains the VAT obligations applicable to foreign suppliers making supplies of digital and/or electronic services to persons in Mauritius under new section 14A of the VAT Act. The provisions bring these supplies within the scope of VAT, effective from 01-01-2026.

The guidance sets out the scope of digital or electronic services covered under Part III of the Tenth Schedule to the VAT Act; the compulsory VAT registration requirement; compliance procedures; the appointment of tax representatives; return filing; payment obligations; and related enforcement consequences. It applies to foreign suppliers without a permanent establishment in Mauritius, or whose place of abode is outside Mauritius, that supply digital or electronic services in the course of business to persons in Mauritius.

Key aspects of this guidance include:

(a) Digital or electronic services specified under the VAT Act are brought within the VAT net – Digital or electronic services covered include supplies of images or texts such as photographs, screensavers, electronic books and other digitized documents; supplies of music, films, television shows, games and programmes on demand; supplies of applications, software and software maintenance; website supply or web hosting services; advertising space on a website; online magazines; and distance maintenance of programmes and equipment. These services are specified under Part III of the Tenth Schedule to the VAT Act. Where supplied by a foreign supplier to a person in Mauritius, such services fall within the scope of VAT under section 14A.

(b) VAT must be accounted for on the earlier of invoice or payment – VAT charged or collected must be included in the VAT return for the relevant month or quarter based on the earlier of the date on which an invoice is issued or payment is received for the supply made to the person in Mauritius. VAT returns must be submitted electronically after the end of every taxable period within twenty days or such other time as may be prescribed. A list of taxable supplies made to persons in Mauritius must also be provided electronically at the time of filing.

(c) Monthly or quarterly filing depends on annual turnover threshold – Where the annual turnover of taxable supplies in Mauritius exceeds MUR 10 million, VAT returns must be submitted on a monthly basis. Where the annual turnover falls below this threshold, the foreign supplier may opt to submit VAT returns on a quarterly basis. VAT payments must be made electronically at the time of filing the VAT return.

(d) Foreign suppliers cannot claim input tax, and the reverse charge ceases upon registration – No input tax is allowable to a foreign supplier of digital or electronic services under section 21(2)(i) of the VAT Act. Once a foreign supplier is VAT registered in Mauritius, the reverse charge mechanism will no longer apply to digital and electronic services supplied to VAT-registered businesses. The registered foreign supplier must charge VAT and report all supplies made in Mauritius.

(e) Non-compliance attracts penalties and interest under the VAT Act – Failure to register for VAT, submit VAT returns, or pay VAT within the prescribed time renders the foreign supplier liable to penalties and interest as provided under the VAT Act. Assistance and clarification may be obtained from the MRA through the specified contact channels.

Source – Official Guide

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