On this page
- Why a Mauritian company still meets EU VAT
- Goods or services: the first dividing line
- Digital services: the case most Authorised Companies meet
- Physical goods: customs and import VAT
- A decision tree for your situation
- Do Authorised Company rules change anything?
- Practical risks to avoid
- A short working routine
- When to ask for help
- FAQ
If you run an offshore company selling to EU customers, the first thing to understand is that VAT follows the transaction, not the company's place of incorporation. An Authorised Company is a Mauritian entity whose central management and control sit outside Mauritius. For the European Union, it is simply a business established outside the EU. Whether EU VAT applies depends on the kind of supply, the status of the buyer and the place where the goods or the customer are located.
This guide explains the logic in plain terms. It does not set out rates, thresholds or deadlines, which differ between member states and change over time. Those must be checked against the current rules of the country concerned, ideally with an adviser who knows EU VAT.
Why a Mauritian company still meets EU VAT
An Authorised Company is created under section 71A of the Financial Services Act 2007 and is managed from outside Mauritius through a Mauritian registered agent. Its tax status in Mauritius is a separate question, covered in Authorised Company taxation in Mauritius. EU VAT is a different tax, with a different test.
Three points explain why the offshore label gives no shelter:
- EU VAT is a consumption tax. It is meant to fall on the final customer in the member state where consumption takes place.
- A seller outside the EU is not exempt. It is usually asked to collect and pay the tax itself, or to organise it through a scheme or an intermediary.
- Corporate income tax and VAT do not offset each other. A favourable position on one says nothing about the other.
Goods or services: the first dividing line
Everything starts with what you sell. The same company may sit in several categories at once.
| What you sell | Typical buyer | General EU VAT treatment (to be confirmed per country) |
|---|---|---|
| Physical goods shipped from outside the EU | Consumer | VAT is generally due on import; a special import scheme may let you collect it at the point of sale |
| Physical goods shipped from outside the EU | Business | The buyer usually handles import VAT; check who is the importer of record |
| Physical goods held in an EU warehouse | Consumer or business | Local VAT registration is normally required in the country of storage |
| Digital services (software access, downloads, streaming, online courses) | Consumer | VAT of the customer's country, usually reported through a non-EU one-stop shop |
| Digital or other services | Business with a VAT number | Usually taxed in the customer's country under the reverse charge; the buyer self-assesses |
| Services linked to land, events or physical performance | Consumer or business | Special place-of-supply rules; do not assume the general rule |
The table is a map, not a ruling. Edge cases are frequent, particularly for bundled offers and marketplaces.
Digital services: the case most Authorised Companies meet
Many offshore companies sell software, subscriptions, templates, coaching or online courses. These are electronically supplied services in VAT terms. The practical consequences are as follows.
Selling to consumers (B2C)
When the buyer is a private individual in the EU, the place of supply is generally the customer's country. The seller therefore charges the VAT rate of that country, not a single rate. Non-EU businesses can usually use the non-Union OSS (one-stop shop): one registration in a chosen member state, one periodic return covering all EU sales, and one payment, instead of registering in each country.
Reading the question "oss vat non eu company" correctly matters here. The scheme is optional in principle, but without it you may have to register in every member state where you make taxable sales. It also brings real duties:
- identifying the customer's location with evidence, such as billing address, IP address or payment-card country;
- keeping the supporting records for the period required by the member state;
- issuing documents that meet the rules of the scheme;
- filing returns on time, even when a period shows no sales.
The mechanics of invoices and documents are discussed in invoicing clients from an offshore company.
Selling to businesses (B2B)
When the customer is a business and gives a valid VAT number, the supply is usually taxed in the customer's country and the customer accounts for the tax under the reverse charge. The seller issues the invoice without EU VAT, with the proper mention, and keeps proof of the customer's business status.
The risk lies in the evidence. A customer who provides no number, or an invalid one, is treated as a consumer. A small consultant or a SaaS founder who assumes "all my clients are businesses" without collecting numbers can find that every sale was a B2C sale.
Physical goods: customs and import VAT
If the company sells goods, for example through an online store, VAT interacts with customs. Goods entering the EU face import VAT, and sometimes customs duty, whoever is the seller. Two common models exist:
- The buyer pays at delivery. The carrier collects VAT and fees from the customer. This often leads to refused parcels and complaints.
- The seller collects at checkout. A special import scheme allows the seller, or its intermediary, to charge VAT at the point of sale for consignments below a low-value ceiling, so the parcel clears customs with VAT already paid.
Non-EU sellers using the import scheme are generally required to appoint an EU-established intermediary, unless an arrangement between the EU and the seller's country says otherwise. Whether that applies to a Mauritian company must be checked at the time of registration.
Holding stock in the EU changes the picture. Goods in a warehouse in a member state usually mean a local VAT registration in that state, and intra-EU shipments may create registration obligations in further countries. For the wider commercial picture of online selling, see e-commerce through an offshore company and the compliance checklist for online sellers.
A decision tree for your situation
This simplified tree helps you identify the likely route. It does not replace a country-by-country check.
Do Authorised Company rules change anything?
The Authorised Company regime affects your Mauritian position, not your EU VAT obligations. Still, three points of the Mauritian framework touch VAT work in practice.
- Substance and location of management. An Authorised Company must have its central management and control outside Mauritius, and cannot be run as a Mauritian operating business. Where you personally manage the company from, for example from an EU country, can raise a separate question of permanent establishment, and from there a question of where VAT registration is needed.
- Registered agent duties. The registered agent, an FSC-licensed corporate service provider (Management Licence), handles filings with the FSC, the Mauritius Revenue Authority and the Registrar. It does not file your EU VAT returns. That remains yours, or your EU adviser's.
- Financial summary. An Authorised Company files a financial summary with the FSC each year, within six months of the end of its financial year. Your sales records, including VAT charged and collected, must be coherent with it. See annual obligations of an Authorised Company.
Section 71A of the Financial Services Act also bars certain regulated activities, including banking and professional trusteeship. A business that sells financial services to EU customers needs separate regulatory advice well beyond VAT.
Practical risks to avoid
Ignoring VAT because "we are offshore"
This is the most frequent error and the costliest. Tax authorities and payment platforms increasingly share data. A company that sold to EU consumers for two years without any VAT treatment can face back-assessments, penalties and interest, and a hard conversation with its marketplace.
Charging VAT without a registration
Charging VAT on invoices when you are not registered is a separate problem. Tax collected must be accounted for. Set your invoicing system up only after you have confirmed your route.
Weak customer location evidence
For digital services, the location of the customer determines the rate. Keep at least two non-contradictory pieces of evidence for each sale, and keep them for the period your scheme requires. Payment gateways can help, as described in taking online payments with an offshore company.
Forgetting the home-country layer
The owner may be tax resident in the EU or elsewhere. Rules on controlled foreign companies and on residence do not depend on VAT, but they reach the same sales. Read controlled foreign company rules before drawing conclusions from a VAT answer alone.
A short working routine
- List each product and classify it as goods, digital service or other service
- Separate B2C sales from B2B sales and collect VAT numbers where relevant
- Record the customer's location with usable evidence for each sale
- Decide on the scheme: non-Union OSS, import scheme, or local registration
- Confirm whether an EU intermediary is required
- Align invoices, accounting codes and reports with the chosen route
- Reconcile VAT reports with your bookkeeping every period
When to ask for help
Cross-border VAT is technical, and rules change. Seek advice if any of the following applies: you hold stock in the EU, you sell through marketplaces that act as deemed suppliers, your sales to a given member state are significant, or your business model mixes goods, subscriptions and services. If you wish to structure the company properly from the start, you can describe your project through the contact form; the request is relayed to an FSC-licensed corporate service provider (Management Licence). Note that this provider assists with the Mauritian side; EU VAT advice normally comes from an adviser qualified in the relevant member state.
This page offers general information, not tax advice. Your position depends on facts that only a review of your business can establish.
FAQ
Does an Authorised Company have to register for VAT in the EU?
Not automatically. It depends on what it sells and where. A company that only supplies digital services to EU consumers will often use the non-Union OSS instead of registering in each country. A company holding stock in an EU warehouse will usually need a local registration. A company that only invoices EU businesses that apply the reverse charge may owe no registration at all, though this should be confirmed per country.
Is there a minimum turnover before EU VAT applies to a non-EU seller?
Do not assume so. Some thresholds in EU VAT apply only to sellers established inside the EU, and non-EU sellers are often treated more strictly. The rule for your type of sale must be checked against the current text and the practice of the member state you choose.
Can I use the OSS if my company is in Mauritius?
Non-EU businesses selling services to EU consumers can generally use the non-Union scheme. For goods, the import scheme has its own conditions, including in some cases an EU intermediary. The practical route depends on the product and on how you ship.
Do I charge VAT to a business customer in France or Germany?
If the customer is a business that gives a valid VAT number and the supply is a service falling under the general rule, you usually issue the invoice without EU VAT and the customer applies the reverse charge. Keep proof of the number, and check whether your product is covered by the general rule or by a special one.
Does Mauritian VAT apply to these sales as well?
Mauritian VAT is a separate regime and is not the subject of this page. The two systems operate independently, and a position under one does not settle the other.
Does being an Authorised Company change what I owe in the EU?
No. The status governs your Mauritian regulatory and tax position. It does not alter the VAT treatment of sales to EU customers. It does impose the duty to keep management outside Mauritius, which can interact with the question of where your company is considered to operate.
Who should file the VAT returns?
You, or an adviser you instruct. The registered agent of an Authorised Company handles filings required by the Financial Services Act, the Income Tax Act and the Companies Act, plus communications with the Mauritian authorities. EU VAT returns are outside that role unless a separate service is agreed.