Mauritius Gazettes VAT Ruling Explaining VAT Treatment of Rental Operations in Claiming Tax Credits, Refunds

The Mauritian Official Gazette June 8 published VAT Ruling No. 115, explaining the VAT treatment of rental operations in claiming tax credits or refunds. The taxpayer was a VAT-registered domestic company limited by shares. The taxpayer engaged in the business activity of buying, holding, and administering a villa in Mauritius. The villa was to be used for business purposes, to generate rental income through rental of the property. The rental income was to be generated following the construction’s completion, with rental periods being less than 90 days. The relevant points of issue were whether the taxpayer, under the specified circumstances, ...