Mauritius Gazettes Ruling on VAT Implications of Manufacturing, Sales Activities in Freeport Zone

The Mauritian Official Gazette July 5 published VAT Ruling No. 122, clarifying the VAT implications of manufacturing and sales activities in the Freeport Zone. The taxpayer, a heating and air conditioning company operating in the Freeport Zone, intended to manufacture and assemble electrical and plumbing kits with supplies provided by a client, and then resell the kits to the client locally. The taxpayer sought clarification as to the implications under the VAT Act. The Revenue Authority clarified that: 1) imports of raw materials not intended for exclusive use in the Freeport Zone, but for processing and local sale, are subject ...