Service Turnover Tax

Business & Self-Employed


What it is? 

Service Turnover Tax (STT) is a tax that is levied on the VAT exclusive cost of turnover of any person conducting a business involving the provision of a prescribed service, at the rate of 5%, with effect from 1 January, 2012. Turnover means any sums or amounts received or receivable by or on behalf of the owner of a service in respect of any sums or amounts included in a charge for a prescribed service. The service provider has to collect the STT shown on the bill issued to a customer.

Who should register for STT?

As from 1 January, 2012, the owner or the person (Accountable Person) who is responsible for the daily management of a prescribed service should register with the Chief Executive Officer within 30 days before the commencement of the business.

For new businesses, the Accountable Person should first obtain a Tax Identification Number (TIN), and then register for STT purposes. Registration must be done within 30 days before the business commences. The 

is available on our website and Customer Service Centre.

Deemed STT registration

This shall apply to any of the following:

Accommodation Services subject to STT

Licensed hotels and vessels engaged in the carriage of tourists within Fiji and which provide overnight accommodation for passengers should charge STT.

The definition of a hotel is given in the Hotels & Guest Houses Act. Hotels are licensed businesses that receive guests or travelers for a fee and include:

  • a boarding house, lodging house, guesthouse or caravan.
  • any part of a building, vessel, premises, structure, caravan or house on wheels.
  • any place used by a hotel for overnight accommodation such as tents, camp sites.

Accommodation Services not subject to STT

It does not include accommodation in public school hostels, boarding schools and those owned by registered charitable trusts/religious bodies and other similar educational/vocational institutions.

Who is responsible for collecting STT?

Any person who is responsible for the daily management of a prescribed service and who has levied the STT on service charges must account for it. This person is referred to, as the “accountable person” and any correspondence or queries on STT will be sent to him.

Accounting for STT

The Accountable person must account for STT in monthly returns. A STT return should be completed and submitted with a cheque/cash for the STT applicable on the turnover for that month within 30 days. The forms are available on our website and Customer Service Centre.

The Accountable Person may issue bills that are STT inclusive or STT/VAT inclusive or separately depending on the record keeping system adopted. However, adequate records must be kept for audit purposes.

STT Penalties

  • any STT remaining unpaid after the due date for payment – 25% Late Payment Penalty applies.
  • If lodgment is late, 20% Late Lodgment Penalty will apply on the outstanding amount on the return.
  • An additional 5% late payment and late lodgment penalties will apply for each month of default on the unpaid tax.


Action will be taken to recover the unpaid STT and penalties from third parties (such as banks) or through the courts. The courts can impose a maximum fine of FJ$15,000 or to imprisonment for a term not exceeding 12 months or to both a fine and imprisonment, with effect from 1 January 2012, on any of the following offences:

  • failure to keep adequate records and accounts relating to the turnover of the hotel.
  • failure to allow authorized tax officials from entering the hotel premises to inspect turnover, collection or payment records
  • failure to produce any books or records relating to the turnover and collection/payment of hotel turnover tax.

The Chief Executive Officer can also make an offer to compound an offence.

Guidelines for calculating STT

The two tables below show how the gross amount paid by a hotel guest should be calculated if a hotel owner is registered for STT and VAT purposes.

The table below shows how the gross amount paid by a hotel guest is calculated where the hotel owner is not registered for VAT.


  • STT is always calculated on the VAT exclusive amount.
  • VAT is calculated in the same way but the base figure shall not include the STT amount.

Further information:

Click here to download the 2012 STT brochures

For more information, Contact Us or alternatively by email: (, or

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Revenue & Customs Services Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Phone: (+679) 3243000
Fax: (679) 3315537