Effective 2 October 2026, the Mauritius Revenue Authority issued a communiqué clarifying the Value Added Tax (VAT) treatment on the supply of services by holders of a Management Licence under the Financial Services Act. The guidance addresses long-standing ambiguity regarding whether management, administration, and support services provided by licensed management companies to global business licence holders (GBL1/GBL2) and other entities constitute taxable supplies for VAT purposes. The MRA confirms that such services are standard-rated at 15% VAT when supplied to taxable persons in Mauritius, but may be zero-rated when exported to non-residents under specific conditions. The communiqué references the VAT Act 1998 and the Financial Services Act 2007.
Key Takeaways
- Standard-Rated Domestic Supplies: Management services rendered to clients resident in Mauritius, including GBL entities conducting business locally, attract 15% VAT. Management companies must charge VAT and issue tax invoices accordingly.
- Zero-Rating for Exported Services: Services supplied to non-resident clients outside Mauritius qualify for zero-rating provided the management company obtains and retains sufficient documentary evidence of the client’s non-resident status and the export of the service.
- Input Tax Recovery: Management licence holders can recover input VAT incurred on costs directly attributable to taxable supplies (including zero-rated supplies). Apportionment rules apply where costs relate to both taxable and exempt activities.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement