Mauritius Introduces 15% Digital Tax on Streaming Services

Starting January 1, 2026, Mauritian consumers will face higher costs for popular streaming services like Netflix, Spotify, and other digital platforms. The government is implementing a 15% Value Added Tax (VAT) on digital services imported from abroad, making your subscriptions more expensive.

Under the new regulations, all foreign digital service providers—including those offering videos, music, apps, games, and software—that earn more than Rs 6 million annually in Mauritius are required to register with the Mauritius Revenue Authority (MRA). Once registered, these companies will need to include the 15% VAT in their monthly bills to Mauritian customers, passing the tax directly onto users.

This move marks a significant shift in how digital content is taxed in Mauritius, affecting millions of users and the digital economy alike.

For example, a Rs 499 subscription will increase to about Rs 575. More expensive plans, like Netflix’s Rs 800 package, will rise to roughly Rs 920 per month. This change aims to boost government revenue without increasing taxes on local businesses, which already collect VAT.

The Finance Ministry explained that the reform is about fairness, leveling the playing field between local and international providers.

Reacting to the news, 21-year-old student Ramchurn Yajnesh from the University of Mauritius criticized the tax as unfair. “I don’t want to pay more,” he said. “I’ve already canceled some subscriptions. With inflation and the exchange rate, this tax is just too much for students like me.”

Yajnesh understands the government wants to yield more revenue, but he believes the tax primarily hurts young people who use these platforms for entertainment, education, and information. “It’s a regressive tax that hits ordinary users, not big companies,” he explained.

He also warned that the weaker Mauritian rupee makes foreign subscriptions already costly.

The additional 15% could push legal content beyond many users’ reach, encouraging piracy. “People will turn to illegal sites because they won’t have a choice,” he added.

Beyond entertainment, Yajnesh highlighted the cultural importance of these platforms. “Spotify helps young Mauritian artists get exposure. If users cancel their subscriptions, those artists lose out,” he noted.

He emphasized that access to educational content like documentaries is vital. “Why make learning and culture less accessible?” he asked.

Yajnesh suggested that this tax could deepen digital divides, further isolating vulnerable communities and limiting access to information and culture.

Emilie Soogund, a student, is not surprised by the new digital services tax. She believed that the public will get used to it, just like with previous price increases.

“Prices have gone up before, but many people still subscribe. If you love the content, you adapt,” she said.

She is considering changing her habits, possibly sharing her account with friends or reducing her subscriptions to just one platform.

She understands the reason behind the tax. “These platforms make a lot of money here without contributing to the economy. A VAT makes sense if the money is used to support local culture, broadcasting, or internet improvements. Otherwise, it’s just an extra tax,” she explained.

However, she finds the audio-visual license fee frustrating. “Paying Rs 150 a month to MBC for content I don’t watch is more annoying than paying for Netflix. At least with Netflix, I choose what to watch and when, on any device,” she said.

She believes the government should rethink its priorities. “We talk about fair taxation, but what’s fair about paying for a public broadcasting service I don’t need?”

Marwan Dawood, 34, criticized the new tax as unfair and poorly thought out.

“This tax hits young consumers hard. They’re already struggling with the rising cost of living, and now they’re being hit with VAT on digital subscriptions. It’s absurd,” he said.

He also criticized the lack of transparency. “They talk about a 15% rate, but nothing is clearly explained. Young people deserve to know what they’re being taxed on.”

He assessed that the measure could backfire. “Many will cancel their subscriptions or use VPNs to avoid the tax. Is this really the country’s fiscal strategy?” he asked.

Dawood is urging officials to reconsider. “You don’t build an equitable society by penalizing those seeking cultural or educational content. It’s time to support young people, not drain them.”

Why are platforms taxed?
With the rise of digital services like Netflix, Spotify, Disney+, Amazon Prime Video, and YouTube Premium, many countries have introduced taxes to ensure these foreign companies contribute to local revenue.

Two main types of taxes are usually applied:

1. VAT / GST (Value Added Tax / Goods and Services Tax):
   Charged on consumption. Platforms add the tax to user bills and remit it to tax authorities.
2. DST (Digital Services Tax):
   Tax on revenue generated locally through advertising, subscriptions, or data — often without the company having a physical presence.

Comparison of streaming taxes in various countries:

This tax landscape shows how many countries are taxing digital content to ensure local economies benefit from global streaming services.

Source: Defi Media