Mauritius
Value Added Tax Act
Act 2 of 1998
- Commenced on 1 July 1998
- [This is the version of this document at 30 June 2017.]
Part I – Preliminary
1. Short title
This Act may be cited as the Value Added Tax Act.2. Interpretation
In this Act—"appointed day" means 7 September 1998;"Authority" means the Mauritius Revenue Authority established under the Mauritius Revenue Authority Act;"business" has the meaning assigned to it in section 3;"business registration number" has the same meaning as in the Business Registration Act;"certificate" means a certificate of registration issued under section 17;"CO2 levy" has the same meaning as in the Excise Act;"customs duty" means the duty leviable under the Customs Act or the Customs Tariff Act;"customs laws" has the same meaning as in the Customs Act;"customs value", in relation to goods, means the value as determined under the Customs Act;"Departing citizen of Mauritius" means a citizen of Mauritius who holds—(a)a valid passport; and(b)a valid ticket for travel by air or sea to a foreign airport or port;"Director-General" means the Director-General of the Authority;"document" includes information stored in a computer, disc, cassette, or on microfilm, or preserved by any mechanical or electronic device;"duty-free shop" has the same meaning as in the Customs Act;"excise duty" means the excise duty chargeable under the Excise Act on the excisable goods specified in Part I of the First Schedule to that Act;"Exempt supply" means a supply of such goods or services exempted from the payment of VAT as are specified in the First Schedule;"Freeport zone" has the same meaning as in the Freeport Act;"goods"—(a)means any movable or immovable property; and(b)includes animals; but(c)does not include money;"hire purchase agreement" has the same meaning as in the Hire Purchase and Credit Sale Act;"import" means bring or cause to be brought within Mauritius;"Input tax", in relation to a taxable person, means—(a)VAT charged on the supply to him of any goods or services; and(b)VAT paid by him on the importation of any goods, being goods or services used or to be used in the course or furtherance of his business;"input tax allowable" means the input tax allowable under section 21;"invoice"—(a)means a document notifying an obligation to make payment; and(b)includes any document similar to an invoice; but(c)does not include a VAT invoice;"levy on energy consumption" means the levy chargeable under section 3E of the Excise Act;"local authority" has the same meaning as in the Local Government Act;"MID levy" means the MID levy chargeable under section 3A of the Excise Act;"Minister" means the Minister to whom responsibility for the subject of finance is assigned,"money"—(a)includes currencies of Mauritius or any other country; but(b)does not include a collector's piece, investment article or item of numismatic interest;"non-resident", for the purpose of section 21 (2) (g) and (ga), item 50 (a) of the First Schedule, item 6 (b) (ii) of the Fifth Schedule and item 1 of Part II of the Tenth Schedule—(a)in the case of an individual, means a person—(i)whose permanent place of abode is outside Mauritius; and(ii)who is outside Mauritius at the time the services are supplied;(b)in the case of any other person—(i)means a person whose center of economic interest is located outside Mauritius; and(ii)includes a company incorporated in Mauritius in so far as its banking transactions carried out through a permanent establishment outside Mauritius are concerned; but(iii)does not include a company incorporated outside Mauritius in so far as its banking transactions carried out through a permanent establishment in Mauritius are concerned;"officer" means an officer of the Authority;"output tax", in relation to a taxable person, means VAT on the taxable supplies he makes in the course or furtherance of his business;"person" includes a Ministry or Government department;"Private company" has the same meaning as in the Companies Act;"qualified auditor" has the same meaning as in the Companies Act;"quarter" means a period of 3 months ending at the end of March, June, September, or December;"record"—(a)means a record specified in section 19; and(b)includes a copy of a VAT invoice specified in section 20;"registered person" means a person who is registered under section 15 or 16;"return" means a return specified in section 22;"services" means anything which is not goods or money;"small enterprise" means a person whose annual turnover does not exceed 10 million rupees;"société"—(a)means a société formed under any enactment in Mauritius; and(b)includes—(i)a société de fait or a société en participation;(ii)a joint venture; or(iii)a société or partnership formed under the law of a foreign country;"supply" has the meaning assigned to it in section 4;"tax" —(a)means the VAT specified in section 9; and(b)includes any penalty and any interest imposed under this Act; but(c)does not include a fine;"taxable period", in relation to a taxable person, means—(a)in the case where his annual turnover of taxable supplies exceeds the amount specified in the Second Schedule, a month or part of a month; or(b)in any other case, a quarter or part of a quarter;"taxable person"—(a)means a person who is required to be registered under section 15; and(b)includes a registered person;"taxable supply"—(a)means a supply of goods in Mauritius, or a supply of services performed or utilized in Mauritius; and(b)includes a supply which is zero-rated; but(c)does not include an exempt supply,made by a taxable person in the course or furtherance of his business;"trust" means a trust constituted under an enactment;"value added tax" means the value added tax charged in accordance with this Act;"VAT" means value added tax, and any reference in this Act to VAT is a reference to value added tax;"VAT Exemption Card" means a card issued under item 9 (b) of the Ninth Schedule;"VAT invoice"—(a)means a VAT invoice under section 20; but(b)does not include a receipt or invoice under section 19;"VAT Registration Number" means the VAT Registration Number allocated to a person under section 17;"visitor" means a person holding —(a)a foreign passport; and(b)a valid ticket for travel by air or sea to a foreign airport or port.[S. 2 amended by Act 25 of 2000; s. 22 (a) of Act 23 of 2001 w.e.f. 11 August 2001; s. 27 (19) (a) of Act 33 of 2004 w.e.f. 1 July 2006; s. 25 (3) of Act 43 of 2004 w.e.f. 1 January 2005; s. 33 (a) of Act 14 of 2005 w.e.f. 1 July 2005; s. 31 (a) of Act 15 of 2006 w.e.f. 1 October 2006; s. 38 (a) of Act 18 of 2008 w.e.f. 7 June 2008; s. 19 (a) of Act 10 of 2010 w.e.f. 24 December 2010; s. 7 (a) of Act 19 of 2011 w.e.f. 13 July 2011; s. 19 (a) of Act 37 of 2011 w.e.f. 15 December 2011; s. 29 (a) of Act 26 of 2012 w.e.f. 22 December 2012; s 29 (a) of Act 26 of 2012 w.e.f. 1 September 2013; s. 53 (a) of Act 9 of 2015 w.e.f. 14 May 2015; s. 57 (a) of Act 10 of 2017 w.e.f. 24 July 2017.]3. Meaning of "business"
4. Meaning of "supply"
5. Time of supply
6. Application of Act
Part II – Administration
7. ***
[S. 7 repealed by s. 27 (19) (c) of Act 33 of 2004 w.e.f. 1 July 2006.]8. Confidentiality
Part III – Liability to VAT
9. Charge to VAT
9A. Deferred payment of VAT at importation
10. Rate of VAT
11. Zero-rating
12. Value of taxable supplies
13. Value of imported goods
The value shall, in respect of goods imported, be the sum of—14. Reverse charge on supply of services received from abroad
Part IV – Registration
15. Compulsory registration
15A. Penalty for failure to apply for compulsory registration
Any taxable person who does not apply for compulsory registration under section 15 shall be liable to pay to the Director-General a penalty of 5,000 rupees for every month or part of the month from the taxable period in respect of which he is liable to be registered as a registered person up to the month immediately preceding the month in which the application for registration is submitted, provided that the total penalty payable shall not exceed 50,000 rupees.[S. 15A inserted by s. 31 (d) of Act 15 of 2006 w.e.f.1 October 2006.]16. Voluntary registration
17. Certificate of registration
17A. Increase in amount specified for compulsory registration
18. Cancellation of registration
18. Cancellation of registration
Part V – Record and VAT invoice
19. Record
19A. ***
—[S. 19A inserted by s. 53 (b) of Act 9 of 2015 w.e.f. 14 May 2015; repealed by s. 69 (c) of Act 11 of 2018 w.e.f. 9 August 2018.]20. VAT invoice
Part VA – Electronic fiscal device
20A. Use of electronic fiscal device
20B. Penalty for failure to use electronic fiscal device
20C. Penalty for misuse of or tampering with electronic fiscal device
20D. Objection to claim
20E. Failure to use electronic fiscal device
Without prejudice to section 20B, any person who is required to use an electronic fiscal device and fails to do so shall commit an offence and shall, on conviction, be liable to a fine not exceeding 200,000 rupees and to imprisonment for a term not exceeding 12 months.[S. 20E inserted by s. 69 (d) of Act 11 of 2018 w.e.f. 9 August 2018.]20F. Misuse of or tampering with electronic fiscal device
Without prejudice to section 20C, any person who—Part VI – Return, payment, and repayment of tax
21. Credit for input tax against output tax
22. Return and payment of tax
23. Tax liability before date of registration
24. Repayment of tax
25. Change in taxable period
26. Penalty for non-submission of return by due date
26A. Penalty for failure to join electronic system
Any registered person who is required under regulations made under this Act to submit his return and make any payment of tax due electronically but fails to join the electronic system, after written notice being given to him by the Director-General, shall be liable to pay to the Director-General, on his failure within a period of 7 days from the date of the notice to justify the failure to join the system, a penalty of 5,000 rupees, for every month or part of the month from the taxable period specified in the notice up to the taxable period immediately preceding the taxable period in respect of which he submits his return, and to make any payment of tax due electronically, provided that the total penalty payable shall not exceed 100,000 rupees.[S. 26A inserted by s. 31 (i) of Act 15 of 2006 w.e.f. 1 October 2006; amended by s. 57 (d) of Act 10 of 2017 w.e.f. 24 July 2017.]27. Penalty for late payment of tax
27A. Interest on tax unpaid or amount repaid or refunded in excess
Part VIA – Public sector agency to deduct an amount from VAT
[Part VIA inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2016; repealed by s. 58 (f) of Act 18 of 2016 w.e.f. 1 July 2016.]27B. ***
[S. 27B inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2016; repealed by s. 58 (f) of Act 18 of 2016 w.e.f. 1 July 2016.]27C. ***
[S. 27C inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2016; repealed by s. 58 (f) of Act 18 of 2016 w.e.f. 1 July 2016.]Part VIB – VAT relating to small enterprise
[Part VIB inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2015.]27D. Interpretation of Part VIB
In this Act—"accounting year" means—27E. VAT annual accounting system
27F. Records
A small enterprise shall keep records in such form and manner as the Director-General may approve.[S. 27F inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2015.]27G. Change in accounting system
Where a small enterprise intends to change its VAT accounting system, it shall, by written notice, inform the Director-General accordingly and shall comply with such conditions as the Director-General may determine.[S. 27G inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2015.]Part VII – Powers of Director-General
28. Power to require information
28A. Act or thing in respect of period before 4 years preceding last day of taxable period
29. Obligation to furnish information
30. Use of computer system
31. Production of books and records
The Director-General may, for the purpose of ascertaining the tax liability of any person, require that person to—32. Power to inspect books, records and goods
32A. Power to access computers and other electronic devices
33. Time limit to require information, books or records
34. Power to require security
34A. Power to waive penalty or interest
35. Warrant to search and seize
36. ***
[S. 36 amended by s. 19 (e) of Act 37 of 2011 w.e.f. 15 December 2011; repealed by s. 69 (h) of Act 11 of 2018 w.e.f. 9 August 2018.]36A. Anti-avoidance provisions
Part VIII – Assessments, objections and review of assessments
[Part VIII amended by s. 22 (e) of Act 23 of 2001.]37. Director-General may make assessments
37A. Penalty on amount claimed in assessment
Where an assessment is made under section 37, the amount of any tax claimed by the Director-General, excluding any penalty under sections 15A, 24 (9), 26, 26A and 27 and any interest under section 27A, shall carry a penalty not exceeding 50 per cent and such penalty shall be part of the tax claimed.[S. 37A inserted by s. 31 (l) of Act 15 of 2006 w.e.f. 1 October 2006; repealed and replaced by s. 69 (i) of Act 11 of 2018 w.e.f. 9 August 2018.]37B. Validity of notice of assessment or determination
The validity of a notice of assessment or determination made under this Act shall not be affected by reason of an error, a mistake, or an omission as to—37C. Additional assessment
38. Objection to assessments
39. Determination of objections
40. Representations to Assessment Review Committee
41. Conclusiveness of assessments
Except during a hearing of representations before the Assessment Review Committee—Part IX – Recovery of tax
42. Priority for VAT charged by a registered person
43. Recovery of unpaid tax and special levy
Part IVC of the Mauritius Revenue Authority Act shall apply to the recovery of any unpaid tax and special levy under this Act, with such modifications, adaptations and exceptions, as may be necessary.[S. 43 repealed and replaced by s. 69 (k) of Act 11 of 2018 w.e.f. 9 August 2018.]44. ***
[S. 44 repealed by s. 69 (l) of Act 11 of 2018 w.e.f. 9 August 2018.]45. ***
[S. 45 amended by s. 19 (i) of Act 18 of 2003 w.e.f. 21 July 2003; s. 27 (19) (f) of Act 33 of 2004 w.e.f. 1 July 2006; s. 4 (j) of Act 4 of 2006 w.e.f. 2 October 2004; s. 53 (m) of Act 9 of 2015 w.e.f. 14 May 2015; repealed by s. 69 (l) of Act 11 of 2018 w.e.f. 9 August 2018.]46. ***
[S. 46 repealed by s. 69 (l) of Act 11 of 2018 w.e.f. 9 August 2018.]47. ***
[S. 47 repealed by s. 69 (l) of Act 11 of 2018 w.e.f. 9 August 2018.]48. ***
[S. 48 repealed by s. 69 (l) of Act 11 of 2018 w.e.f. 9 August 2018.]Part IXA – ***
[Part IXA repealed and replaced by s. 22 (i) of Act 23 of 2001 w.e.f. 1 January 2002; repealed by s. 27 (19) (g) of Act 33 of 2004 w.e.f. 1 July 2006.]48A. ***
[Ss. 48A and 48B repealed and replaced by s. 22 (i) of Act 23 of 2001 w.e.f. 1 January 2002; repealed by s. 27 (19) (g) of Act 33 of 2004 w.e.f. 1 July 2006.]48B. ***
[Ss. 48A and 48B repealed and replaced by s. 22 (i) of Act 23 of 2001 w.e.f. 1 January 2002; repealed by s. 27 (19) (g) of Act 33 of 2004 w.e.f. 1 July 2006.]Part X – VAT relating to bonded warehouses, freeport zone and duty-free shops or shops under the deferred duty and tax scheme
[Part X amended by s. 31 (f) of Act 17 of 2007 w.e.f. 22 August 2007.]49. VAT relating to a bonded warehouse or an excise warehouse
50. VAT relating to freeport zone
51. ***
[Ss. 51 and 52 repealed by s. 31 (o) of Act 15 of 2006 w.e.f. 1 October 2006.]52. ***
[Ss. 51 and 52 repealed by s. 31 (o) of Act 15 of 2006 w.e.f. 1 October 2006.]53. VAT relating to a duty-free shop or shop under the Deferred Duty and Tax Scheme
Part XA – Solidarity levy
[Part XA inserted by s. 31 (q) of Act 15 of 2006 w.e.f. 1 July 2006.]53A. Purpose of solidarity levy
The purpose of the solidarity levy raised under this Part shall be to finance the Empowerment Programme referred to in the 2006-2007 Budget Speech.53B. Liability to solidarity levy
53C. Payment of solidarity levy
Every operator shall, after the end of every taxable period, within such time as may be prescribed, pay to the Director-General, in respect of that period, the levy in such manner as the Director-General may approve.53D. Circumstances in which no levy is payable
No levy shall be paid in a financial year where—53E. Adjustment of levy
53F. Late payment of levy
Where the operator fails to pay the levy on or before the last day on which it is payable under section 53C, he shall be liable to pay to the Director-General, in addition to the levy—53G. Assessment and recovery of levy
The provisions of Parts VII, VIII and IX and sections 65, 67, 68, 69, 70 and 71 shall apply to the levy with such modifications, adaptations and exceptions as may be necessary to bring them into conformity with this Part.[S. 53G repealed and replaced by s. 31 (h) of Act 17 of 2007 w.e.f. 22 August 2007.]53H. Interpretation
In this Part—"levy"—Part XB – Special levy on banks
[Part XB inserted by s. 19 (f) of Act 37 of 2011 w.e.f. 15 January 2012; repealed by s. 35 (o) of Act 9 of 2015 w.e.f. 1 July 2015; inserted by s. 69 (m) of Act 11 of 2018 w.e.f. 9 August 2018 shall come into operation in respect of accounting period ending on or after 1 January 2019 and in respect of every subsequent accounting period.53I. Interpretation
In this Part—"Accounting period" means —53J Liability to special levy
53K Late payment of special levy
Where a bank fails to pay the special levy on or before the last day on which it is payable under section 53J (2), it shall be liable to pay to the Director-General, in addition to the levy—53L Assessment and recovery of special levy
Parts VII, VIII, IX and XI and sections 68, 69, 70 and 71 shall apply to the special levy with such modifications, adaptations, and exceptions as may be necessary.[S. 53L repealed by s. 35 (o) of Act 9 of 2015 w.e.f. 1 July 2015, inserted by s. 69 (m) of Act 11 of 2018 w.e.f. 9 August 2018 shall come into operation in respect of accounting period ending on or after 1 January 2019 and in respect of every subsequent accounting period.]53M. ***
[S. 53M repealed by s. 35 (o) of Act 9 of 2015 w.e.f. 1 July 2015.]Part XI – Offences
54. Failure to register or pay tax
Any person who—55. Failure to submit return and pay tax
Any person who, being a registered person—56. Failure to keep records or to issue VAT invoice
Any person who—57. Incorrect return or information
Any person who, for the purpose of this Act—58. False returns, books, records or VAT invoices
Any person who willfully and with intent to evade VAT—59. Other offences
Any person who—60. Penalties for offences
61. Compounding of offences
62. Tax payable notwithstanding prosecution
A person convicted of an offence under this Act, or any regulations made under it or who has agreed to the compounding of an offence under section 61 shall not be relieved of his liability for payment of any tax due.Part XII – Miscellaneous
63. Cessation or transfer of business
63A. ***
[S. 63A inserted by s. 19 (h) of Act 37 of 2011 w.e.f. 15 December 2011; repealed by s. 69 (n) of Act 11 of 2018 w.e.f. 9 August 2018.]64. ***
[S. 64 repealed by s. 69 (n) of Act 11 of 2018 w.e.f. 9 August 2018.]65. Refund of VAT to persons other than taxable persons
Any person, other than a taxable person, may, within 3 years of the date of payment of the tax, make an application to the Director-General, in such form and manner as the Director-General may determine, for a refund of tax paid at importation, where—65A. Refund of VAT to persons other than registered persons
65B. Refund of VAT to diplomatic missions and agents
65C. Refund of VAT to persons on residential building, house, or apartment
65D. Time limit for refund and payment of interest
65E. Contributions to Film Promotion Fund
66. Exempt bodies or persons
67. Erroneous refund, exemption or reduction
68. Service of documents
69. Admissibility of documents produced by computer
69A. Rulings
69B. Statement of Practice
The Director-General shall, from time to time, issue and publish Statements of Practice in relation to the application of specific provisions of this Act.[S. 69B inserted by s. 38 (f) of Act 18 of 2008 w.e.f. 19 July 2008.]70. Jurisdiction of Magistrate
71. Burden of proof
72. Regulations
73. Transitional provisions
74. ****
75. ***
76. ***
History of this document
30 June 2017 this version
Consolidation
01 July 1998
Commenced