Mauritius Revenue Authority: SMEs and VAT: Balancing Tax Obligations and Administrative Burdens

As of October 1st, all businesses with an annual turnover exceeding Rs 3 million for taxable sales or services are required to register for Value Added Tax (VAT). This measure, introduced in the 2025-2026 Budget, affects approximately 7,000 small and medium enterprises (SMEs) and aims to broaden the tax base to enhance tax collection and strengthen public revenue. However, it has raised concerns among many entrepreneurs.