Mauritius Gazettes Ruling on VAT Treatment of Partial Bank Acquisition

The Mauritian Official Gazette March 29 published VAT Ruling No. 119, clarifying the VAT treatment of partial bank acquisitions. The taxpayer, a bank, acquired certain operations of another bank, but not the bank itself. The acquisition included some employees, some customers, and a branch that was leasehold property. The taxpayer sought clarification as to the VAT treatment of the partial acquisition. The Revenue Authority clarified that: 1) the transaction didn’t qualify as an exempt transfer of a business as a going concern under Section 63(3) of the VAT Act, because the other bank wouldn’t cease business operations; and 2) the ...