Mauritius VAT Rules for Foreign Digital Services in 2026

December 6, 2025

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Earlier this year, the Mauritian government released the 2025-26 National Budget, which highlighted key measures, initiatives, and legislative changes needed to fulfill the ambitious goals of creating national rules and regulations fit for the digital age and the modern economic reality. Notably, the National Budget included measures on VAT and excise duty, including the imposition of VAT on foreign digital service providers.

Key VAT Requirements for Foreign Digital Service Providers

Starting from January 1, 2026, foreign digital service providers will have to charge and collect 15% VAT on supplies to local consumers, that is, for B2C transactions, regardless of their turnover from these supplies. The only exemption from these rules is provided for B2B transactions, more specifically for supplies made to VAT-registered taxable persons in Mauritius. In that case, a reverse-charge mechanism applies.

Services that fall under the scope of this rule include the provision of digitized materials such as photographs, e-books, and other electronic documents, streaming or downloading of music, films, games, and on-demand programs, and the sale or maintenance of software and applications. Furthermore, services relating to websites, including hosting, online advertising space, and access to online magazines, are also taxable. Notably, even remote support or maintenance of software and equipment falls within the scope of these rules.

Additionally, foreign taxable persons whose annual taxable supplies exceed MUR 3 million (approximately USD 66,000) will be required to appoint a locally established tax representative to submit VAT returns and remit VAT payments on their behalf to the Mauritius Revenue Authority. Regarding VAT return filing frequency, foreign digital service providers will be obliged to file monthly or quarterly, depending on the amount of annual taxable supplies.

Conclusion

By requiring foreign digital service providers to charge and collect VAT on services provided, the Mauritian government is leveling the playing field and applying the same rules to domestic and foreign businesses. Businesses providing digital services should determine whether they have consumers in Mauritius and, if so, how this impacts their pricing, reporting, and payment obligations. Foreign digital service providers that exceed the defined threshold should also find and appoint a reliable tax representative.

Source: Deloitte, VATabout

When do the new VAT rules for foreign digital service providers in Mauritius take effect?

The new VAT rules take effect on January 1, 2026, requiring foreign digital service providers to charge and collect 15% VAT on B2C supplies made to consumers in Mauritius.

Which types of digital services are taxable under the new Mauritian VAT rules?

Taxable services include digitized materials like photographs and e-books, streaming and downloads of music, films, games and on-demand programs, software sales or maintenance, website-related services such as hosting and advertising space, online magazines and even remote software or equipment support.

Do foreign digital businesses need to charge VAT on all customers in Mauritius?

VAT must be charged on B2C transactions, meaning supplies to local consumers. Supplies to VAT-registered businesses are exempt from charging VAT, as the reverse-charge mechanism applies instead.

Is there a turnover threshold that triggers additional VAT obligations for foreign suppliers?

Yes, foreign taxable persons whose annual taxable supplies exceed MUR 3 million, or about USD 66,000, must appoint a locally established tax representative to manage VAT filings and payments.

How often will foreign digital service providers need to file VAT returns in Mauritius?

Filing frequency will be monthly or quarterly depending on the supplier’s annual taxable turnover, as required by the Mauritius Revenue Authority.

What should foreign digital service providers do to prepare for the new VAT requirements?

Providers should assess whether they have Mauritian consumers, evaluate how VAT affects their pricing and reporting processes and, if they exceed the threshold, appoint a reliable local tax representative to ensure compliance.

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