Mauritius Tax Agency Explains VAT Treatment on Carbon Credit Sales

The Mauritian Revenue Authority Oct. 12 issued VAT Ruling No. 118, explaining VAT on carbon credit sales. The taxpayer, a Mauritian company, was established to trade in carbon emission reduction credits. The taxpayer considered purchasing carbon credits from two trusts established in Mauritius. The taxpayer sought clarification on the VAT consequences of the trusts selling carbon credits to the taxpayer. The Tax Agency determined that: 1) selling carbon credits was a non-exempt supply of services subject to VAT; and 2) the seller trusts would be required to register for VAT if their annual turnovers exceeded, or were likely to ...