Section 66: Exempt bodies or persons

66. Exempt bodies or persons (1) Any person specified in Column 1 of the Ninth Schedule shall be exempted from the payment of VAT in respect of goods or services corresponding to the person specified in Column 2 of that Schedule. (2) Where goods or services are supplied pursuant to subsection (1), the registered person shall not charge VAT on the goods or services supplied, nor shall any element of VAT be added to the price of those goods or services. (3) (a) Where an exempt person specified in Column 1 of item 11 or 13 of the Ninth Schedule has been exempted from the payment of VAT in respect of the construction of a purpose-built building specified in Column 2 of that item and before the end of the nineteenth year following the year of completion of the building, the building or part of the building— (i) is no longer used by him for the specified purpose; or (ii) is sold or otherwise transferred and is no longer used for the specified purpose, the exempt person shall, in the case provided for under subparagraph (i), give immediate written notice to the Director-General specifying the date since which the building or part of the building is no longer used by him for the specified purpose. (b) Where the building or part of the building is sold or otherwise transferred and is no longer used for the specified purpose, the new owner shall give immediate written notice to the Director-General specifying the date since which the building or part of the building is no longer used by him for the specified purpose. (c) The exempt person referred to in paragraph (a) or the new owner referred to in paragraph (b) shall be liable to pay to the Director-General, the VAT which would have been otherwise payable, multiplied by the factor referred to in paragraph (d). (d) The factor shall be the proportion which the period between the date of sale, transfer or cessation of use for the specified purpose and the expiry of the 20-year period from the date of completion of the building bears to the 20-year period. (4) (a) The Director-General shall, by notice in writing, claim from the exempt person or the new owner, as the case may be, the amount of VAT payable under subsection (3) (c). (b) The amount claimed under paragraph (a) shall be paid within 28 days from the date of the notice. [Issue 10] V4 – 46 Revised Laws of Mauritius (5) (a) Where an exempt person or a new owner is dissatisfied with a notice under subsection (4), he may, within 28 days from the date of the notice, object to the claim in such form as the Director-General may determine. (b) Where an exempt person or a new owner, as the case may be, makes an objection, he shall, in the form, specify the detailed grounds of his objection. (c) Where it is proved to the satisfaction of the Director-General that, owing to illness or other reasonable cause, an exempt person or a new owner has been prevented from making an objection within the time limit in paragraph (a), the Director-General may consider the objection. (d) Where the Director-General refuses to consider an objection made after the time limit in paragraph (a), he shall, within 28 days from the date of receipt of the letter of objection, give notice of refusal to the exempt person or the new owner, as the case may be. (e) The burden of proving that the notice of the Director-General is incorrect, or what the amount of VAT should be, shall be on the exempt person or new owner, as the case may be. (6) (a) The Director-General shall conside jection. (d) Where the Director-General refuses to consider an objection made after the time limit in paragraph (a), he shall, within 28 days from the date of receipt of the letter of objection, give notice of refusal to the exempt person or the new owner, as the case may be. (e) The burden of proving that the notice of the Director-General is incorrect, or what the amount of VAT should be, shall be on the exempt person or new owner, as the case may be. (6) (a) The Director-General shall consider an objection under subsection (5) and review the notice, and may— (i) disallow or allow it in whole or in part; and (ii) where appropriate, amend the notice to conform with his determination. (b) The Director-General shall, within 4 months from the date of receipt of the objection under subsection (5), give notice of the determination to the exempt person or new owner, as the case may be, and shall, at the same time, claim any VAT. (c) Where the objection is not determined within 4 months under paragraph (b), it shall be considered to have been allowed by the DirectorGeneral. (7) Where an exempt person or a new owner, as the case may be, is aggrieved by a decision under subsection (5) (d) or a determination under subsection (6), he may lodge written representations with the Clerk of the Assessment Review Committee in accordance with section 19 of the Mauritius Revenue Authority Act. [S. 66 amended by Act 18 of 1999; s. 31 (r) of Act 15 of 2006 w.e.f. 7 August 2006; s. 57 (n) of Act 10 of 2017 w.e.f. 24 July 2017.] V4 – 46 (1) [Issue 10] Value Added Tax Act