Tax Talk:Value Added Tax ( VAT) Monitoring System

As announced in the 2020/2021 National Budget on July 17, 2020, the implementation of the Phase three of the Value Added Tax ( VAT) Monitoring System ( VMS) under the Tax Administration ( Electronic Fiscal Device) Regulations 2017 has been further deferred to January 1, 2022.

The VAT Monitoring System will be applicable on gross turnover of more than $100,000.00. Taxpayers, who voluntarily register for VAT (i.e. those presently below $ 100,000.00), will not be captured in VMS.

VAT Monitoring System

Launched in 2017, the VAT Monitoring System is a tool applicable to gazetted group of businesses to monitor the sale of all goods and services.

Under the current tax law, all gazetted group of businesses with annual gross sales exceeding FJ$100,000, are required to register and account for VAT based on their registered taxable period which is either monthly, quarterly or annually.

VAT is trust money collected by all registered person(s) and businesses in Fiji on behalf of the Government and therefore should be correctly accounted to the Fiji Revenue and Customs Service (FRCS).

Some registered businesses have been charging VAT but unfortunately have not been correctly declaring the amount of VAT collected.

Changes in Tax Rate for VAT Monitoring System

In the 2020/2021 National Budget, there were changes in tax rates for certain tax types.

These changes will impact VMS compliance, hence FRCS is requesting all relevant parties to take note that effective from August 1, 2020, following changes in VMS/EFD tax rates are applicable:

We encourage all consumers to carefully check all fiscal invoices to ensure that correct tax rates have been levied to avoid any overpayment.

Should you find any inconsistencies on the fiscal invoices, please email us on efdenquiry@ frcs. org. fj.

Compliant Taxpayers

The roll-out of the VMS is being done in phases.

The first phase of roll out was for supermarkets and pharmacies while the second phase includes hardware companies, accounting firms, medical centers, travel agencies and the law firms. We are pleased to announce that Phase one and two of Electronic Fiscal Device (EFD)/Vat Monitoring System (VMS) achieved 95 per cent and 91 per cent compliance respectively.

FRCS would like to thank all Phase one and two businesses for their continuous support, commitment and dedication in achieving this compliance level towards the VMS journey. We would also like to encourage and will assist and support the remaining businesses from Phase one and two to come on board and achieve compliance.

Importance of EFD/VMS

The objective of the VAT Monitoring System is to have efficient and reliable software to encourage voluntary tax compliance and at the same time, collect the much needed revenue for the government.

The VMS software is linked to the Taxpayers Point of Sale (POS) and provides real time data to FRCS on total company sales and the amount of other tax collected.

Companies that are registered for VMS will have QR Code on their fiscal invoice.

FRCS encourages customers to download the FRCS Receipt Ver

VAT or any ificator from Google App Store, as when you scan the QR Code on your fiscal invoice this will ensure the VAT component of your purchase is registered with FRCS and at the end of the month, if the business does not pay their

FRCS encourages customers to download the FRCS Receipt Verificator from Google App Store, as when you scan the QR Code on your fiscal invoice this will ensure the VAT component of your purchase is registered with FRCS and at the end of the month, if the business does not pay their VAT, we have evidence of unpaid trust money.

VAT, we have evidence of unpaid trust money.

When scanning the QR Code, you will also be able to save and download a copy of your purchases, which will help you to keep track of all your expenses electronically and avoid you keeping invoices for too long, as the details on the invoices may fade by the time you want to claim your expense details.

The VMS is also expected to minimise fraudulent activities.

VMS- Phase 3 Group of Businesses

As outlined in the Government of Fiji Gazette, Volume 20 No.9 (Dated May 21, 2019) https:// www. frcs. org. fj/ wp- content/ uploads/ 2019/ 05/ GN- 38- Tuesday- 21May-20191.pdf.

Businesses, that are part of Phase 3 and meet the requirements outlined in the COVID - 19 Response Budget must register for EFD/VMS through the following link ( https:// eservices. frcs. org.fj/EFD) on FRCS website.

For more information please email us on info@ frcs. org. fj.

Feedback: