An Introduction to Value Added Tax (VAT)
Value Added Tax (VAT)
Value Added Tax (VAT) is a tax on spending that is levied on the supply of goods and services in Fiji at the rate of 9%, with effect from 1 January, 2016.
All businesses with a turnover of $100,000 or more are required to register for VAT and lodge return on a yearly basis provided the gross turnover does not exceed $300,000. However, should gross turnover exceed $300,000 then VAT is to be accounted for on a monthly basis.
Any person whose annual gross turnover is less than $100,000 can still apply to register for VAT voluntarily
VAT is levied on all goods and services at the rate of 9% and is effectively borne by the consumer.
VAT is zero rated for certain items including exports and sale of a business as a going concern.
Certain items are exempt from VAT including financial services.
The VAT Act requires most businesses and organizations involved in taxable activities in Fiji to:
- register for VAT with FRCS within 21 days of becoming so liable;
- charge and collect 9% VAT applicable to the range of goods and services they supply;
- lodge their VAT Returns and pay the VAT collected to the FRCS when due.
VAT is said to be broad based and indirect in nature and any person who carries on a taxable activity (other than a produce supplier) where annual gross turnover has exceeded the threshold of $100,000 is required to register for VAT with FRCS.
VAT completion and filing requirements are onerous and need to be handled professionally. All claims must be supported with source documents to minimize unnecessary VAT audits and rejection of claims by FRCS.
We can offer you our expertise to ensure all your VAT related matters with FRCS are taken care of. So talk to us now and together we can expeditiously ensure all your VAT related matters are kept in order.
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