Mauritius Gazettes VAT Ruling Explaining VAT Treatment for Reimbursement of Labor Costs

The Mauritian Official Gazette Jan. 6 published VAT Ruling No. 113, explaining the VAT treatment on the reimbursement of labor costs. A domestic company and a global business company involved in architectural services, both owned by the same taxpayer. Both companies share a pool of employees of different skills, employed and paid by the domestic company. The domestic company claimed reimbursement of labor costs for the time spent in the global company by the domestic company employees. The taxpayer sought clarification on the VAT treatment on the reimbursement of labor cost. The tax agency explained that a 15 percent standard ...