A German industrialist Dr. Wilhelm von Siemens proposed the concept of VAT in 1918. And, it was first introduced by Maurice Lauré (Joint Director of the French Tax Authority, the Direction générale des impôts) in 1954. Over 130 countries worldwide have introduced VAT over the past three decades and India is amongst the last few to introduce it. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues. At the beginning, VAT was only applied to large businesses but over time it was extended to include all business sectors. A value added tax (VAT) is a form of consumption tax , that is, a tax on goods and services. It is chargeable on all taxable supplies of goods and services by a taxable person while carrying out business. From the perspective of the buyer, it is a tax on the purchase price and from that of the seller, it is a tax only on the "value added" to a product, material or service.
Vat system in Mauritius
VAT is levied in Mauritius since September 1998 and the rate of VAT is 15 per cent. The standard way to implement a VAT involves assuming a business owes some percentage on the price of the product minus all taxes previously paid on the good. For example, as VAT rate is 15 %, an orange juice maker would pay 15 % of the Rs 5 per litre. In Mauritius, the Mauritius Revenue Authority (MRA) is the responsible body for the management and accounting of tax levies on the island (including VAT, customs, excise, and gaming). The rate of 15% VAT (Value Added Tax) is payable on all taxable goods and services (unless specifically exempted from tax) whether it is by a taxable person or not. A taxable person is someone who is registered for VAT; as such tax is charged on all goods sold to his customers (output tax) as well as claimed from him by his suppliers (input tax). VAT is also payable on the importation of goods into Mauritius, irrespective of whether the importer is a taxable person or not...
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