MRA: Mauritian Firms Warned of Prison Risk over VAT Non-Compliance

Businesses across Mauritius are facing the prospect of heavy fines and imprisonment as the Mauritius Revenue Authority (MRA) launches a major crackdown on Value Added Tax (VAT) irregularities.

The tax authority issued a firm reminder this week that legal compliance is “not optional,” warning that any omission or failure to adhere to VAT laws will trigger severe legal sanctions.

The move is part of a broader national initiative to strengthen fiscal transparency and rigor.

Strict Invoicing Requirements

Under current legislation, all registered companies must charge VAT at the prevailing rate on the sale of goods and services within Mauritius, excluding those specifically exempt or zero-rated.

The MRA has clarified that the tax must be invoiced at the point of supply and accurately recorded in the VAT return for the corresponding fiscal period.

To be considered valid, every taxable supply must be supported by a compliant invoice featuring:

• The supplier’s name, address, and VAT registration number.
• The date of issue and a description of goods or services.
• The total amount and the specific VAT amount charged.

The authority emphasized that the absence of a valid invoice or the failure to apply VAT constitutes a punishable offence under the law.

Regular Audits and Support

“Compliance is not optional,” an MRA spokesperson stated, noting that regular audits are conducted to identify non-compliant businesses.

Firms are being urged to immediately review and regularise their tax practices to avoid “legal complications.”

To assist businesses in meeting these obligations, the MRA has made support services available:

• Website: www.mra.mu
• Helpdesk: 207 6000
• Email: registration@mra.mu

The MRA maintains that businesses must take their fiscal responsibilities seriously to ensure the continued transparency of the Mauritian economy.

Source: Defi Media