Input VAT Claims in Mauritius — What You Can and Cannot Claim

One of the main benefits of being VAT-registered in Mauritius is the ability to claim back input VAT on business purchases. But the rules are not always straightforward. Understanding what you can and cannot claim will save you money and keep you compliant with the MRA.

What Is Input VAT?

Input VAT is the VAT you pay on goods and services purchased for your business. When you file your VAT return, you can deduct the input VAT you paid on business purchases from the output VAT you collected on sales. The difference is what you pay to the MRA.

What You CAN Claim

• Goods and services used for business purposes — office supplies, equipment, software, and professional services.
• Raw materials and inventory — materials you use to produce goods for sale.
• Business utilities — electricity, internet, and phone bills for your office.
• Capital goods — machinery, computers, and vehicles used exclusively for business.
• Professional fees — accounting, legal, and consulting fees related to your business.

What You CANNOT Claim

• Mixed-use items — if something is used for both business and personal purposes, you can only claim the business proportion.
• Entertainment expenses — meals, drinks, and entertainment for clients or staff are generally not claimable.
• Motor vehicles — input VAT on cars is not claimable unless you are in the business of selling or leasing vehicles.
• Exempt supplies — if your business makes exempt supplies, you cannot claim input VAT on purchases related to those supplies.
• Personal expenses — anything that is not exclusively for business use.

How to Claim Input VAT

1. Keep all tax invoices — you must have a valid invoice to claim.
2. Ensure the invoice shows the supplier's VAT number, your business details, and the VAT amount.
3. Enter the input VAT amount in the correct box on your VAT return (Box 5 on the VAT return form).
4. Keep supporting documents for at least 5 years in case of an MRA audit.

Partial Exemption

If your business makes both taxable and exempt supplies, you may only be able to claim a proportion of your input VAT. The MRA uses a formula based on the value of taxable supplies versus total supplies to determine how much you can claim.

Common Mistakes to Avoid

1. Claiming without a valid invoice. Receipts or informal notes are not enough — you need a proper tax invoice.
2. Claiming on personal expenses. The MRA can disallow claims and impose penalties.
3. Not keeping records. You must retain invoices for 5 years. Failing to do so can result in claims being rejected.
4. Claiming on exempt supplies. If part of your business is exempt, you cannot claim input VAT on those purchases.

How Fanal Helps

Fanal records the VAT on every purchase you log, making it easy to see how much input VAT you can claim. When it is time to file, you have everything organised and ready. Try it free today.