There are 5 steps to benefit from a VAT refund when building your home

A scheme called the VAT Refund Scheme has been put forward for Mauritian citizens to claim up to Rs 500,000 of the VAT amount used for the construction of their house.

Step 1                       

The VAT Refund Scheme on Residential Building is accessible to Mauritians above the age of 18. You are eligible if you own, along with your spouse, a residential building or an apartment. Your annual net income should not exceed Rs 2 Million.

Step 2

The total cost of construction of the residential building should be around Rs 4 million or less. You should hire a registered contractor who can issue VAT invoices in order to provide you with a contract of service in the proper form.

Step 3

You will be at this stage be able to determine how much you can claim. The cumulated VAT amount refunded will be around Rs 500,000 or less. For example if you are making instalment payments to the contractor as per the advancement of the project, the minimum amount claimable per quarter is Rs 25,000.

Step 4

The deadlines are important for the refund. The construction of the residential building must be started and completed before the 30th June 2025 which is the duration of the scheme.

Your application for refund to the MRA should be submitted within 30 days from the end of every quarter during which you have paid the VAT to the contractor. Your application will be invalid if it is made more than 12 months from the date of payment of the final amount of VAT to the contractor.

Step 5

 The following documents should be submitted with your first application for refund:

• VAT invoices issued by your contractor.
• The contract of service given to you by your building contractor.
• The building permit given to you by the District Council or Municipality bearing your full name.
• Deed of purchase of land.
• Pay slip for employee or income statements for self-employed to prove your income