Mauritius has extended its VAT regime to cross-border digital and electronic services supplied by non-resident providers. From 2026, foreign digital suppliers must register for VAT and comply with local reporting obligations.

Effective Date and Implementation Timeline

The new VAT rules apply to supplies made from January 1, 2026.

Who Is Affected and Compliance Impact

Foreign digital service providers selling to Mauritian customers must assess VAT exposure, register for VAT, and ensure correct treatment of B2C and B2B supplies.

The measures were approved by Parliament as part of the Finance Act 2025, following announcements in the 2025/26 Budget, and administered by the Mauritius Revenue Authority (MRA).

Digital and Electronic Services in Scope

The legislation brings specified digital or electronic services supplied by foreign providers into the scope of Mauritian VAT.

Definition of Digital or Electronic Services

According to the new rules, "Digital or electronic service" means such service

• by a foreign supplier over the internet or an electronic network which is reliant on the internet; or
• by a foreign supplier and is dependent on information technology for its supply.

Examples of In-Scope Digital Services

• Supplies of images or texts, such as photographs, screensavers, electronic books, and other digitised 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
• Distance maintenance of programmes and equipment

VAT Registration Requirements for Foreign Suppliers

Foreign suppliers of specified digital or electronic services must register for Mauritian VAT irrespective of turnover, including where they make B2B-only supplies.

VAT Treatment of B2C and B2B Supplies

For B2C supplies, foreign digital service providers must charge and remit 15% Mauritian VAT, while B2B supplies to VAT-registered customers remain subject to the reverse-charge mechanism, although VAT registration by the foreign supplier is still mandatory.

This change increases compliance obligations for foreign digital businesses and removes the ability to rely on turnover thresholds or B2B-only models to stay outside the Mauritian VAT system, making early registration and correct VAT configuration critical to avoid non-compliance.