Mauritius Gazettes VAT Ruling Explaining VAT Treatment on Supply of Services

The Mauritian Official Gazette June 8 published VAT Ruling No. 116, explaining the VAT treatment on the supply of services. The taxpayer, a public limited company that was incorporated and domiciled in Mauritius, primarily engaged in providing hotel accommodations. The taxpayer claimed a refundable deposit from most of its clients and received the deposits from tour operators located outside Mauritius. The relevant points of issue were whether there was a supply of services under the VAT Act, and if so, whether the supply was taxable at a zero percent rate or the standard rate. The Tax Agency clarified that: 1) ...