Mauritius VAT on foreign digital services

Mauritius is to impose Value Added Tax collections obligations on the providers of digital or electronic services to its consumers. This will include hotel and house-sharing services. The current Mauritius VAT rate is 15%.

The measure was put forward in the 2020/21 budget this week, and is part of many measures to help the state cope with the COVID-19 crisis. Aside from raising additional revenues, it will provide a level-playing field for local providers who must charge VAT.

It follows similar recent announcements by the Philippines and Indonesia. Mexico and Chile are imposing the same consumption tax requirements on non-residents. Check Avalara’s global VAT on electronic services summary.