VAT in Mauritius ; Calculations of VAT by Mauritius Revenue Authority
Value Added Tax (VAT) is a tax on goods and services. It is chargeable on all taxable supplies of goods and services made in Mauritius by a taxable person in the course or furtherance of any business carried on by him. VAT is also payable on the importation of goods into Mauritius, irrespective of whether the importer is a taxable person or not. The rate of VAT is 15 %
How does the VAT System operate?
If a person is in business, as soon as the turnover of his taxable supplies exceeds the prescribed limit, he becomes a taxable person. However, if he is engaged in a specified business or profession, he is a taxable person irrespective of the turnover of his taxable supplies.
As a taxable person, he is required to be registered for VAT.
Once a person is registered for VAT, he charges VAT on all the taxable supplies made to his customers. This is his output tax. Similarly, the VAT registered person will be claimed VAT on the taxable goods and services supplied to him by his VAT registered suppliers. This is his input tax.
Every quarter (or every month in case his annual turnover of taxable supplies exceeds Rs 10 million) the VAT registered person fills in a VAT return in which he substracts the input tax allowable from the output tax and pays the balance to the MRA. If the input tax is more than the output tax, the excess may be carried forward as a credit to his next return or may be repaid in certain circumstances
What is the meaning of 'business'?
For VAT purposes, business has a very wide meaning and includes activities carried on by a person, whether or not for gains or profits.
As a general rule, business in the context of VAT means the carrying on of any trade, commerce or manufacture, profession, vocation or occupation and includes the provision of facilities by clubs, associations or other organisations which charge admission fees
When does a supply take place?
A supply of goods takes place when they are transferred generally for a consideration in money or money's worth. Goods may be supplied on sale, including credit sale, on hire purchase or on rental. Services are supplied when they are performed for a consideration.
What is a taxable supply?
A taxable supply is a supply of goods, or a supply of services which are performed or utilised, in Mauritius and which is subject to VAT. A taxable supply includes a supply which is zero-rated, but it does not include an exempt supply.
What is an exempt supply?
An exempt supply is a supply of goods or services which are specifically exempted from the payment of VAT. A person who makes only exempt supplies cannot register for VAT.
Who is a taxable person?
A taxable person is a person who is registered for VAT or a person who is required to be registered, but has not taken the necessary steps to register
Which supplies are zero-rated?
In general, all goods or services which are exported are zero-rated. In addition, certain goods and services which are supplied on the local market are zero-rated.
When is VAT chargeable on a supply?
VAT is chargeable on the supply of goods or services at a definite time, called the time of supply. This time of supply becomes the tax point and the supply must be accounted for by reference to that point in time.
For any supply of goods or services in Mauritius, the time of supply is deemed to be the earlier of:
- the time an invoice or a VAT invoice in respect of that supply is issued by the supplier: or
- the time payment for that supply is received by him.
Where services are supplied for a continuous period under any enactment or agreement which provides for periodic payments, the services are treated as successively supplied for the relevant parts of the period. Each successive supply is deemed to take place at the earlier of the time the supply is invoiced by the supplier or the time payment for the supply is received.
Where a taxable supply is made under a hire purchase agreement, the supply is deemed to take place at the time the agreement is made.
In the case of a lease agreement, the supply is deemed to take place at the earlier of the time the supply is invoiced by the supplier or the time payment for the supply is received.
Source: Mauritius Revenue Authority
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