Overview of the VAT Free / Paid Supplies Scheme in Mauritius
The Mauritius Revenue Authority (MRA) issued a formal notice on 18 June 2012 regarding the implementation of the VAT Free / Paid Supplies Scheme. This scheme is designed to facilitate VAT refunds for tourists holding foreign passports, encouraging tourism and simplifying the process of reclaiming VAT paid on eligible purchases during their stay in Mauritius.
Objective and Scope of the Scheme
The primary objective of this scheme is to enable VAT-registered businesses to offer VAT-free supplies to qualifying tourists. Specifically, it allows these tourists to benefit from a VAT refund on purchases made within Mauritius, provided certain conditions are met. The scheme applies to all VAT-registered entities wishing to participate in providing VAT-free supplies to foreign tourists, thus promoting the tourism sector and enhancing the overall visitor experience.
Eligibility and Conditions for Participation
To operate under this scheme, VAT-registered persons must adhere to specific procedures outlined by the Mauritius Revenue Authority. These include:
- Informing the Director General of the MRA of their intention to participate in the VAT Free / Paid Supplies Scheme.
- Complying with the conditions set forth by the MRA, which include maintaining proper records of eligible transactions and issuing appropriate documentation to tourists.
- Ensuring that the supplies qualify as VAT-free under the scheme, which typically involves providing goods or services to tourists holding a valid foreign passport.
Procedure for Refund of VAT
Tourists who make purchases eligible under the scheme can claim a refund of the VAT paid on those purchases. The refund process is streamlined as follows:
- At the time of departure from Mauritius, tourists can visit the Refund Counter located in the Departure lounge at SSR International Airport.
- The refund is processed by the MRA, which refunds the VAT paid on eligible purchases made during their stay.
- Refunds are only granted if the total refundable amount, after deducting administrative charges, exceeds a minimum threshold of 200 rupees in aggregate for purchases made at a single shop.
Important Limitations and Exclusions
It is important to note that the scheme does not provide refunds for amounts below the specified threshold of 200 rupees. Additionally, the scheme applies only to VAT paid on qualifying purchases made in Mauritius by tourists holding valid foreign passports. The process is designed to ensure transparency and compliance with the legal framework established by the MRA.
Implications for Businesses and Tourists
For businesses, participation in the VAT Free / Paid Supplies Scheme offers an opportunity to attract more international visitors by providing a seamless VAT refund experience. It requires adherence to reporting and record-keeping obligations as stipulated by the MRA.
Tourists benefit from a straightforward process to recover VAT paid on their purchases, enhancing their overall experience and potentially increasing their expenditure during their stay. The refund process at the airport ensures that tourists can conveniently claim their VAT refunds before departing Mauritius.
Contact and Further Information
For detailed guidance or to register under the scheme, VAT-registered persons are advised to contact the Mauritius Revenue Authority at the following:
- Telephone: 207 6000
- Fax: 211 8099
- Email: headoffice@mra.mu
Compliance with the scheme's conditions is essential to benefit from the VAT refund process. The Mauritius Revenue Authority continues to promote digital and efficient procedures to facilitate these transactions, aligning with the government’s broader objectives of enhancing ease of doing business and supporting tourism growth.
