Simplified VAT Registration

Application for Simplified VAT Registration

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• Guide on Simplified VAT Registration

• Notes

Compulsory VAT Registration

Finance Act 2025 has brought amendments to the Value Added Tax Act where –

1. Value Added Tax (VAT) registration threshold reduced from Rs 6 million to Rs 3 million;

   Every person whose turnover of taxable supplies exceeds or is likely to exceed Rs 3 million is required to apply to the Director -General for compulsory VAT registration.

2. Holders of Pleasure Craft Licence

   Holders of Pleasure Craft Licence issued by the Tourism Authority in respect of a pleasure Craft of more than 12 metres are also required to apply to the Director-General for compulsory VAT registration.

Simplified VAT Registration

To facilitate the VAT registration process, the MRA has developed the facility for a simplified VAT Registration.

To access the system, applicants will have to use either their National Identity Card (NID), Business Registration Number (BRN) or Tax Account Number (TAN) and password to access the system.

Where password is not available for individuals or companies, the applicant will be able to retrieve the password through the password management system by providing the NID or NCID or TAN and follow the steps thereof.

Processing of the simplified VAT registration

Once the application has been submitted, MRA will register the person in business by allocating a VAT Registration Number which is same as his Tax Account Number.  A Certificate of Registration and a distinctive mark will also be issued to him.

The VAT registered person shall display the aforementioned documents at each of his business premises in a conspicuous place.

Obligation of a VAT registration person

A VAT registered person should -

• compulsorily charge VAT on all taxable supplies made by him and issue VAT invoices on sales made on or after his effective date of registration.

• Thereafter VAT registered person should remit the VAT charged and effect necessary payment accordingly by submitting a VAT return to MRA.

• keep proper written records (either on paper or electronically) in English or French for all business transactions and should be kept for a period of at least 5 years after the completion of the transaction to which it relates.

Submission of VAT return

VAT registered person should submit a quarterly return or monthly return and declare all taxable supplies made by him and claim input tax allowable to him.  A VAT registered person making an annual turnover of taxable supplies not exceeding Rs. 10 million are normally required to submit VAT return on a quarterly basis.  However, he may opt to submit monthly VAT returns instead of a quarterly VAT return.

Below are the taxable periods that cover each quarter for a VAT return:

• Quarter ended 31 March: From 1 January to 31 March

• Quarter ended 30 June: From 1 April to 30 June

• Quarter ended 30 September: From 1 July to 30 September

• Quarter ended 31 December: From 1 October to 31 December

Due date to submit VAT return

A return has to be submitted within 20 days from the end of the month or quarter to which it relates.  Where the last day for the submission of a VAT return falls on a Saturday, Sunday or public holiday, the VAT return may be submitted on the following working day.

However, where a registered person submits both his VAT return and make payment electronically, the time for submission of the return and payment of tax on or before the end of the following month.

Offences pertaining to non-registration for VAT

Failure to register for VAT is an offence under the VAT Act and on conviction, the person may be liable to a fine not exceeding three times the amount of tax involved and to imprisonment for a term not exceeding 8 years.

Offences pertaining to return submission for VAT

A VAT registered person is liable to the following penalties and interest:

1. Penalty for non-submission of return

   Rs. 2,000 for every month or part of the month up to a maximum of Rs. 20,000 until the return is submitted.

   Where the registered person is a small enterprise (turnover does not exceed Rs. 10 million), the maximum penalty shall not exceed Rs. 5,000.

2. Penalty for late payment of tax

   A penalty of 10% on the amount of tax payable is applicable if payment is effected after the due date. Where the registered person is a small enterprise, the penalty for late payment is 2%.

3. Interest

   Interest of 1% per month on the unpaid tax from the date the tax remained unpaid to the date of payment.

 General Information

• Persons in business are recommended to use a recent version of Google Chrome, Internet Explorer or Mozilla Firefox as browser to file their return.

• Kindly note that it is the persons in business’s responsibility to file a correct and complete return.

• Please ensure that correct email address and telephone number has been provided as they will be used by MRA for any further communication.

• On successful submission an application, an acknowledgement ID will be displayed on the screen followed by an email confirming same. If no acknowledgement ID is received, the submission is incomplete. Please take necessary actions to correctly submit the application.

Support services

A dedicated SME Help Desk has also been provided at the seat of MRA’s head office for persons in business regarding their registration process or any other related assistance.  They may also send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or contact MRA on 207 6000 during regular working days from 08:45 to 16:30. Persons in business may also seek assistance from MRA by using the e-appointment facility available on MRA website.

Furthermore, the MRA encourages persons in business and VAT registered persons to consult our website for resources which are made available to them such VAT rulings, Guides etc.