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 15%, with effect from 1 January, 2011.
Previous Years tax rates
The tax is collected on behalf of the Government by businesses and organizations which have been registered with the Taxation Division.
Once you register, you should start preparing your accounting records to accommodate VAT. To support your VAT charges and input tax credit claims, you must keep tax invoices and other accounting records for at least seven (7) years, and make them available to Audit/Compliance auditors, when requested.
The rules governing value, place and time of supply are:
Where most transactions will be at arm’s length (i.e. buyer and seller are not connected, and time of sale will be quite clear). In these instances, the value of supply will be the price paid; the place of supply will be where the item sold is situated; while the tax liability will arise at the earlier of invoicing, payment, or delivery.
If a person is registered on a payments basis VAT will be remitted once payment is made or received, regardless of the tax liability.
Calculating VAT refunds or payments
As a VAT registered person, you are responsible for filing VAT returns on which you will report:
You claim input tax credits for the VAT paid, or owing, on:
Lodging returns, payments and refunds
Every registered person must “…on or before the last day of the month following the last day of every taxable period, without notice or demand furnish to the Chief Executive Officer a VAT return…” (Section 33 of VAT Decree)
Monthly VAT Returns
|Month Ending||Due Date for Lodgement|
|31 August 2012||30 September 2012|
|31 July 2012||31 August 2012|
|30 June 2012||31 July 2012|
3 Monthly VAT Returns
|Period Ending||Due Date for Lodgement|
|July – September 2012||31 October 2012|
|April – June 2012||31 July 2012|
|January – March 2012||30 April 2012|
Yearly VAT Returns
|Year Ending||Due Date for Lodgement|
|31 December 2012||31 January 2013|
|31 December 2011||31 January 2012|
|31 December 2010||31 January 2012|
Payment must be accompanied with your VAT return if payable and be received by the returns due date.
You are to mail your VAT return to the Taxation Division (Customer Service Centre) office in Suva, Lautoka, Labasa, Savusavu and Rakiraki.
For more information, click on “How VAT Works”.
What it is and when it is charged?
A charge applied to a recipient on the value of supplies received from overseas at the rate of 15%, with effect from 1 January, 2011. Supplies are taxable through the reverse charge provision. Section 21(2) of the VAT Decree.
Examples of services subject to VAT reverse charges:
Who should account for it and when?
The recipient of the service is required to calculate the output tax on the value of the service and pay the relevant output tax to FRCA. The recipient is treated as the supplier of the service and is also entitled to claim an input credit for the amount paid in the VAT Return.
When should it be accounted for?
The recipient should account for the VAT reverse charges at the time the service is paid for to prevent any unnecessary delay in the issue of related tax clearance.
The following penalties apply under the Tax Administration Decree
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