Rental VAT

Last activity 09 June 2022 by Saneng

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SanengNew member08 June 2022 21:02:34

Hello,

I was just wondering when it comes to renting property who is liable to pay the income tax of 15% on the rent a landlord receives. I think this is known as a TVA. Would it be added to the quoted rental amount so that the tenant pays it? This does make sense to me but I wanted to double check.

Thank you in advance.

Anou86ViP09 June 2022 02:44:08

1047

Hello Saneng,

VAT (Value Added Tax) or in french, TVA (Tax sur la Valeur Ajoutée) is an indirect tax of 15% on consumer goods and services paid to a VAT registered individualor company by the consumer/customer.

For example, prices displayed in supermarkets (shops etc) are all VAT inclusive for which the customer pays. In the case of fees of services, your landlord would probably just include VAT in the price. As you are the customer, you pay for VAT.

1. Find out if your landlord is VAT registered (you can politely ask him).

2. Did he issue and hand over to you a VAT invoice ?

There are some exemptions. Should you need further documentation, I suggest you read the following :

Mauritius Corporate - Other taxes

VAT Sensitisation Campaign MRA

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Income tax refers to tax on imposable income/revenue payable to Government by an individual or company. The landlord will pay his income tax if he is taxable.

Regards,

Anoushka

GuestPoster510Guest09 June 2022 03:51:24

214245

@Saneng

The person who rents pays amount written on the contract.

If the rent is Rs20.000, the tenant pays 20.000 to the landlord. The landlords pays its taxes.

If you want to earn 20.000 after taxes as a landlord, just rent your house for 23.000.

SanengNew member09 June 2022 11:15:06

Thank you both for your super quick and helpful replies.

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