FRCS would like to advise on the VAT calculations as announced in the 2025/2026 Fiji National Budget. The VAT rate is being reduced from 15% to 12.50% effective from 1st August 2025. The zero-rated VAT items remain unchanged.
Pre August 1st 2025 Period Calculation:
VAT Exclusive Price to VAT Inclusive Price
| VAT Rate | Cost | VEP | Calculating VAT Component To be Charged on Cost | VAT Component | VIP Calculation | VIP |
| 15% | $100.00 | $100.00 | VAT Value = Cost (VEP) x VAT Rate VAT Value = $100 x 15% or 0.15 | $15.00 | VIP = Cost + VAT Component VIP = $100 + $15 | $115.00 |
VAT Inclusive Price to VAT Exclusive Price
| VAT Rate | VIP | VAT Fraction | Calculating VAT Component To be Charged on Cost | VAT Component | VEP Calculation | VEP |
| 15% | $115.00 | 3/23 | VAT Value = Cost (VIP) x VAT Fraction VAT Value = $115 x 3/23 | $15.00 | VEP = VIP-VAT Component | $100.00 |
Post July 31st 2025 Period Calculation:
VAT Exclusive Price to VAT Inclusive Price
VAT Rate | Cost
| VEP
| Calculating VAT Component To be Charged on Cost
| VAT Component
| VIP Calculation
| VIP
|
12.50%
| $ 100.00
| $ 100.00
| VAT Value = Cost (VEP) x VAT Rate
| $12.50
| VIP = Cost + VAT Component
| $112.50
|
VAT Inclusive Price to VAT Exclusive Price
VAT Rate | VIP
| VAT FRACTION
| Calculating VAT Component To be Charged on Cost
| VAT Component
| VIP Calculation
| VEP
|
12.5%
| $ 112.50
| 1/9
| VAT Value = Cost (VIP) x VAT FRACTION
| $12.50
| VEP = VIP-VAT Component
| $100.00
|
For further assistance, please contact us on 3243000 or toll-free line 1326 or email info@frcs.org.fj/vat@frcs.org.fj. Gold Card members can email at goldcardservices@frcs.org.fj .
Last Updated - February 4, 2026