From October 1 onwards this year, Mauritius has exempted event planners from across the world from paying 15% VAT on their hotel room charges through their stay in the country for any of these events.

The Finance (Miscellaneous Provisions) Act 2023 has introduced the MICE VAT Exemption Scheme, which replaces the MICE VAT Refund Scheme.

Under the new scheme, an event organiser (local or foreign) may apply with the Economic Development Board (EDB) for exemption of VAT in respect of accommodation costs incurred during an event held in Mauritius subject to these terms and conditions:

The event (business meeting, conference, or wedding) should be attended by 50 or more visitors from abroad

Visitors stay for a minimum of 3 nights in a hotel in Mauritius.

“With the implementation of this scheme, we hope Mauritius becomes the preferred destination for event planners across India to celebrate both their professional and personal milestones against the stunning Mauritian backdrop!” said Arvind Bundhun Director, Mauritius Tourism Promotion Authority’s (MTPA).

Event organisers are required to register for the specific event at least four weeks before the date of the event.

Post registration, they should submit the application for VAT exemption to the Economic Development Board at least two weeks before the event date on the EDB website.

Alcoholic drinks are not included in hotel room charges.

Any additional accommodation cost incurred by visitors extending their stay beyond the event date for personal reasons will not qualify for exemption.

To be eligible for the scheme:

The event planner must ensure that each of his 50 or more visitors/guests holds a foreign passport

A valid ticket for travel by air or sea to a foreign airport or port.

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How many of us have heard the recorded toneless voice: “Dear customer, due to the Corona virus and shortage of manpower we regret we cannot accept any phone calls regarding your inquiry on refund matters. Please press 1 to continue. We apologize for the inconvenience.”

Corona has found its most unexpected victim … the refund category.

With business and leisure travel plans cancelled and hotels partially closed, airlines, train, cruise and travel agencies have gone crazy handling the humongous volume of requests for cancellation reimbursement once the government ordered it.

Online travel agencies (OTA) and brick and mortar agencies have red flagged refunds as a hurdle and sought immediate government aid.

An an example, an estimated £7 billion was spent by Britons on holidays booked pre Corona that will no longer take place. These holidaymakers are demanding a full reimbursement and are entitled to it.

The second major category of refunds are weddings and private events, trade and corporate shows, sports matches and glitzy calendar season tickets…all of which stand cancelled or postponed. 

Take the thousands of big fat Indian weddings booked for the year that have been cancelled and you can understand how event managers and venue platforms are struggling to find ways to recompense the parties.

Thats not all.

The steep drop in disposable income in business and family finances have led to mass cancellation of various orders.

From the urgent to the mundane, the most common refrain is can you cancel and refund the booking?
So the list progresses…airline, travel, hotel, event and entertainment, gym and club membership, season ticket, all the way to app upgrade pay back to shopping voucher compensation, cancellation of edu upgrade fees, to premium status rebates.

We are in a world where everyone is turning their figurative back to a known universe of constant consumerism.

Banks are registering a staggering amount of queries on refund status on cancelled orders of services no longer required/possible to deliver or fulfill.

School, college and tution reimbursement are another important category affecting every other family. When universities and schools are closed what happens to fees gathered? What about schools which had charged annual fee increases to reluctant parents and were asked to rollback the fee hikes and were flooded with irate calls: where’s my refund?

Consumer outrage at delay in processing and honouring refund requests has found expression on social media. Virtual credit shells and virtual wallets are not acceptable and cash transfer to bank accounts is a loud demand.

Finally, refund rights and class action suits are coming up and legal eagles are getting ready for the battle which asks ‘Are refunds legal in a Covid pandemic?’