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. Theis 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:
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.
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 minimum 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:
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.
Click here to download the 2012 STT brochures
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