Mauritius: New 15% VAT on Digital Services as from January 2026
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Starting on January 1, 2026, the Mauritius Revenue Authority (MRA) is implementing a 15% VAT (Value Added Tax) on a wide range of foreign digital and streaming services. This change will affect everything from your favourite streaming platforms to online booking sites. As announced in the Mauritius Budget 2025-2026, this new tax on digital services is part of a broader effort to regulate the digital economy. Whether you’re a Mauritian resident, a business owner, or a tourist, here’s a breakdown of what this new digital tax means for you.
Why Is Mauritius Introducing a Digital Services Tax?
The primary reasons behind this new tax are to strengthen the national economy and create a fairer marketplace.
Boost Foreign Reserves: Many of these digital services are paid for in foreign currencies, like US dollars or euros. The VAT collected will help increase Mauritius’ foreign reserves, making the country more financially stable and better able to manage economic shocks.
Level the Playing Field: For years, local digital and entertainment companies have been required to charge VAT, while large foreign platforms operated tax-free, highlighting the need for a digital tax on streaming services. This created an unfair competitive advantage for international giants. The new tax ensures that both local and foreign providers operate under the same rules, contributing to fair taxation.
Which Digital Services Are Affected?
The new 15% VAT will apply to online services provided by foreign suppliers. This includes a broad range of platforms, digital or electronic services you might use daily:
Video Streaming: Netflix, Amazon Prime Video, Disney+
Music Streaming: Spotify, Apple Music, YouTube Music
How Will This Affect Your Subscription Costs in Starting January 2026?
The new digital services tax will directly impact the cost of these services for all users in Mauritius.
Individuals: If you subscribe to any of the services listed above, your monthly costs will increase by 15%.
Businesses: Entrepreneurs and businesses using international software or cloud services can expect a modest rise in their operational expenses.
Tourists: Visitors booking accommodations or activities through platforms like Airbnb or Booking.com will see the 15% VAT added to their final bill.
Digital Services Pricing in Mauritius with 15% Tax Increase
To give you an idea of the change, here’s how your monthly subscription costs on popular streaming services will be affected approximately starting in 2026:
Category
Service
Current Monthly Price (Approx.) (MUR)
New Monthly Price with 15% (MUR)
Increase (MUR)
Video Streaming Services
Netflix Premium 4K + HDR
Rs459.54
Rs528.47
Rs68.93
Amazon Prime Video
Rs275.54
Rs316.87
Rs41.33
Disney+ Premium
Rs695.02
Rs799.27
Rs104.25
Music Streaming Services
Spotify Premium Individual
Rs151.34
Rs174.04
Rs22.70
Apple Music Individual
Rs505.54
Rs581.37
Rs75.83
Gaming Services
PlayStation Plus Premium
Rs827.54
Rs951.67
Rs124.13
Xbox Game Pass Ultimate
Rs919.54
Rs1,057.47
Rs137.93
Software Subscriptions
Microsoft 365 Business Basic + Copilot
Rs1,656.00
Rs1,904.40
Rs248.40
Canva Pro
Rs690.00
Rs793.50
Rs103.50
ChatGPT Plus
Rs920.00
Rs1,058.00
Rs138.00
What Are the Expected Outcomes for Mauritius?
Increased Government Revenue: The MRA projects an annual income of approximately Rs 45.2 million (USD 1 million) from this new tax, creating a previously untapped source of revenue for the state.
Tax Collection: Foreign digital service providers will be responsible for collecting the VAT directly from their Mauritian customers and remitting it to the MRA.
Registration Requirements for Businesses: Foreign providers with annual revenue from Mauritian customers exceeding Rs 6 million must register for VAT with the MRA, charge and collect the tax, and file VAT returns to the MRA.
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