VAT Filing in Mauritius — A Plain-English Guide for Small Businesses

VAT — Value Added Tax — is the most common tax obligation for small businesses in Mauritius. If your taxable supplies exceed Rs 3 million per year, you must register for VAT. Once registered, you must charge VAT at 15% on taxable supplies, file quarterly returns, and keep proper records. Here is a plain-English overview of what that means in practice.

When Do You Need to Register?

VAT registration becomes compulsory when your taxable supplies exceed Rs 3 million in a twelve-month period. This threshold was lowered from Rs 6 million on 1 October 2025. Certain professions listed in the 10th Schedule to the VAT Act must register regardless of turnover. If you are close to the threshold, it is worth consulting an accountant — voluntary registration is also an option if you want to reclaim input VAT on business purchases.

What Does “Charge VAT” Actually Mean?

When you make a taxable supply, you add 15% VAT to the price and collect it from your customer on behalf of the MRA. You then remit the difference between the VAT you collected (output tax) and the VAT you paid on business purchases (input tax) to the MRA each quarter. If your input tax exceeds your output tax, you can claim a refund.

The Quarterly Filing Cycle

VAT returns are filed quarterly. The MRA's fiscal year runs from 1 July to 30 June, and the filing deadlines follow standard quarterly intervals. Each return must include your total taxable supplies, output VAT, input VAT, and the net amount payable or refundable. Late filing attracts penalties, so it is worth setting calendar reminders well in advance.

What Records You Need to Keep

The MRA requires you to maintain complete records of all invoices issued and received, bank statements, purchase receipts, and any customs documents for imports or exports. These records must be retained for a minimum of five years. Digital records are acceptable — and in many cases preferable, because they are easier to search and less likely to be lost.

At a minimum, your invoicing system should capture: the date of supply, a description of goods or services, the consideration (price), the VAT charged, and the VAT registration numbers of both supplier and customer. This is not optional — it is what the MRA expects to see during a compliance review.

Common Pitfalls

The most frequent mistakes are: failing to charge VAT on taxable supplies, claiming input VAT on exempt purchases, not issuing proper VAT invoices, and missing filing deadlines. A simple habit — reviewing your invoices monthly rather than scrambling at quarter-end — catches most of these before they become problems.

Making It Easier

You do not need expensive software to file VAT correctly. What you need is a system that records every transaction accurately, generates compliant invoices, and gives you a clear view of your output and input tax. Whether that is a well-organised spreadsheet or a purpose-built tool like Fanal, the important thing is consistency. The businesses that handle VAT without stress are the ones that never let their records get behind.