Value Added Tax Act 1998 - The Mauritius Chamber of Commerce ...

MRA The Value Added Tax Act 22
(7) (a) Where, in respect of a building (including extension and renovation) forming
part of the fixed assets of a registered person, a credit for input tax has
been taken, and before the end of the nineteenth year following the
year it was acquired, that building is sold or otherwise transferred 86* ,
the registered person shall be liable to pay back to the Director-
General, in respect of the remaining portion of that period, the
proportionate amount of the credit allowed.
(b)
The registered person shall, in his return for the taxable period during
which the building has been sold or otherwise transferred 87 * , treat the
proportionate amount referred to in paragraph (a) as output tax.
(8) For the purposes of determining the proportion of the value of taxable supplies
to total turnover under subsection (3) (b), the value of taxable supplies shall exclude the value
of capital goods. 88*
(9) Notwithstanding subsection (5), but subject to subsection (10), where a person
is registered for VAT under section 15, he may, subject to subsection (2), take credit in his
first VAT return of the VAT paid or payable on his trading stocks and capital goods, being
plant, machinery or equipment of a capital nature, held on the date immediately preceding the
date of his registration. 89*
(10) No credit shall be allowed under subsection (9) unless -
(a)
the registered person submits to the Director-General at the time of
submission of his first VAT return, an inventory duly certified by a
qualified auditor, of -
(i) his trading stocks; and
(ii) his capital goods, being plant, machinery or equipment of a capital
nature,
on the date immediately preceding the date of his registration;
(b)
(c)
(d)
the goods forming part of his trading stocks and the capital goods were
acquired within a period not exceeding 3 months immediately
preceding the date of his registration;
the VAT paid or payable is substantiated by receipts or invoices issued
by VAT registered persons or by customs import declarations; and
credit for input tax in respect of the goods has not been taken under
section 23.
22. Return and payment of tax
* Please refer to endnotes at Appendix Page 22 of 107