Tax and VAT registration are two important steps in business incorporation in Mauritius. While in some countries these procedures are also associated with the appointment of a fiscal representative, this is not the case in this state. However, this remains a useful service for those seeking to ease the relationship with the local authorities.
Below, our company formation agents explain when can a Mauritius fiscal representative be hired, as well as the services such an agent can provide.
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Requirements for foreign companies in Mauritius
Fiscal representation is usually required for foreign companies, however, in Mauritius, these only need a local registered address or a permanent establishment in order to obtain VAT numbers. Another aspect to consider is that businesses need to register for VAT if their revenue for the previous 12 months surpassed MUR 6 million (about EUR 124,000). Individuals who produce or intend to make taxable supplies may choose to voluntarily register.
For natural persons, Mauritius residence permits are required when moving to this country and seeking to open companies.
Taxpayers can hire or not Mauritius fiscal representatives for the purpose of obtaining VAT numbers, but also for other tax-related services.
If you want to open a company in Mauritius and need support, you can also rely on our agents.
What is a fiscal representative?
A fiscal representative is a tax-registered agent who will handle the administrative responsibilities, VAT matters, and communicate with the tax authorities on a Mauritius business’ behalf. Using such a service permits local businesses to transact in countries where fiscal representation is required.
This is particularly useful for Mauritius companies that operate in EU countries where such a representative is often required. Through it, companies can take advantage of cash flow and VAT benefits.
Should you want to set up a company in Mauritius, our local consultants can assist with choosing such a representative.
Fiscal representation services in Mauritius
Here are the main services a fiscal representative can offer in Mauritius:
- tax and VAT registration;
- VAT return preparation and filing;
- recovering VAT during tax inspections.
However, such an agent can also offer support in other tax-related matters.
During trade operations, fiscal representatives can provide importers and exporters with advice regarding applicable regulations. Among these:
- details on storage areas for flows both within and outside of the country;
- details regarding distance sales (these usually apply to e-commerce companies);
- consignment storage;
- overseas subcontracting activities before client delivery.
Should you need assistance in choosing a tax agent in Mauritius, you can rely on us for such services.
Who can be appointed as a fiscal representative in Mauritius?
As long as accreditation from the Mauritius Revenue Authority (MRA) is obtained, such a service provider can be a natural person (accountant) or company (accounting firm). What is useful to note is that such an agent can be held accountable by the MRA for non-compliance.
VAT-related aspects you should consider about Mauritius
The value added tax is the most important levy in this country, as it applies to most goods and services. In order to pay it, a Mauritius company must respect several regulations in this sense. Among them:
- if a business’ taxable turnover surpasses MUR 10 million (about EUR 208,000), it must electronically file returns and pay VAT in Mauritius on a monthly basis;
- if not, it must do so quarterly;
- the deadline for VAT returns in Mauritius is the 20th day of the month that follows the reporting period;
- penalties for filing VAT returns after the deadline: MUR 2,000 (about EUR 42) per month until the entire amount owed is paid;
- there is also a 2% late payment penalty.
If you need fiscal representation services, do not hesitate to contact our company registration agents in Mauritius.
