VAT is a consumption tax which is administered by FRCS and contributes approximately 40 to 45 percent of the Government revenue.

The objective of the VAT Guide is to support voluntary compliance as it will provide practical guidance on the application of the VAT laws and allow taxpayers to implement the VAT legislation more effectively.  FRCS is grateful for the technical assistance provided by the Asian Development Bank (ADB) Domestic Resources Mobilization Trust Fund for developing the VAT Guide.

While launching the VAT Guide, our Acting Chief Executive officer Mr. Malakai Naiyaga, said the VAT Guide has been designed to simplify the understanding and application of the VAT legislation, particularly for those who do not have much technical knowledge on VAT.

Mr. Naiyaga said that the VAT Guide has the relevant information that is supported through practical examples for emerging businesses, sole traders, Micro, Small and Medium Enterprises (MSMEs) and for anyone who is planning to become a VAT-registered taxpayer.

“To highlight the importance of VAT, allow me to briefly share some of the budget figures. In this financial year’s budget 2023-2024, the Government is forecasting $3.1billion in revenue to be collected by FRCS. Of this amount, VAT accounts for $1.53billion which represents about 50% of the total revenue,” he said.

“Therefore, a dedicated focus on improving VAT Compliance is fundamental to successful revenue collection. Our approach is shifting towards collaboration, partnership, awareness, and education as necessary in building a national tax compliance culture.”

The Regional Director of ADB Pacific Subregional Office Mr. Aaron Batten was pleased to join us this morning for yet another important milestone in Fiji’s taxation system; with the launching of the new VAT Guide.

According to Mr. Batten, VAT contributes around 40 percent of the Government’s revenue, and an efficient and credible VAT system is one of the most important pillars of Fiji’s taxation systems.

We were delighted to launch our Tertiary Entry Level Paid Program (TELPP) this morning at our Regional Training Centre at Nasese Complex in Suva.

TELPP has been developed through the technical assistance from the Australian Tax Office (ATO). The Program provides an early engagement point, aiming to attract, recruit and retain high quality tertiary students undertaking relevant bachelor’s program or above and looking for paid work and experience aligned to their current studies.

During the launch of the TELPP, FRCS Acting CEO Mr, Malakai Naiyaga a key pillar in FRCS’s Strategic Plan for 2023 -2025 is People and as a Service institution, having well trained, well developed and engaged people are crucial to the effectiveness of the services that we provide.

“We want to be an “employer of choice”.  I am sure most of you know that it is easier said than done – where we create an environment that reflects valuing every member of our staff and recognizing the critical importance of their learning and development.  It is a destination that we aspire to get to,” Mr. Naiyaga said.

“A key national issue currently is labour migration, loss of skilled and semi-skilled people to overseas countries.  Indeed, it is a global issue that companies, institutions and Governments are dealing with, and it is important that we deal with this matter promptly.  Australia as well as NZ have rolled out appropriate programs which most of us are aware of,” he said.

“Skills shortages are bound to put pressure on our ability to effectively carry out our function and the services we provide to Fiji individuals and businesses.  At FRCS, we must seek to attract talent early with the desired qualifications and remain contemporary and competitive in the employment market.”

Mr. Naiyaga expressed his gratitude to the Australian Government and ATO for their support with TELPP.

He said TELPP ensures that FRCS invests in, and builds, an appropriately skilled workforce, with the right attitude and cultural traits to meet our workforce requirements now and into the future.

“The current rates of migration require FRCS to innovate and pursue best-practice recruitment methods. The technical assistance support provided by the ATO plays an important role in the development of this program.”

Mr. Naiyaga said FRCS and ATO has an official tax partnership supported by the Australian Government under the “Vuvale” partnership. This Partnership affirms our shared ambition to use this connection as the basis for a new, higher level of cooperation.

He added that TELPP is one of the achievements demonstrating the collaboration between FRCS and ATO and both organisations are currently working on other important tax areas which will benefit the Fijian Economy.

The First Secretary Governance at the Australian High Commission in Fiji, Ms. Rebecca Brown who was the Chief Guest of the TELPP launch said that TELPP is one element of Australia’s support for raising the next generation of leaders in the Fijian public sector and addressing skill shortages.

“Under our Fiji and Australia Vuvale Partnership, we are supporting Government to strengthen education service delivery, supporting a new generation of leaders through the Australia Awards Scholarship program, and boosting skills development through the Australian Pacific Training Coalition,” Ms. Brown said.

“And now, as a result of the strong and effective partnership between the ATO and the FRCS, we are pleased to support Fiji Government, and in particular the FRCS, in its innovative approach to attracting and retaining Graduate talent and remaining competitive in the increasingly tight employment market.

“By offering an early engagement point with tertiary students, the Program will provide an opportunity for university students to acquire targeted and paid work experience  in a formalized development program.”

According to Ms. Brown, the transfer of skills and formalized training will not only contribute to a pipeline of future leaders for Fiji’s public service but will assist FRCS in meeting its critical workforce targets now and into the future.

She also stated that considering the important role of tax administration, she is confident that the TELPP will help to ensure FRCS remains an “employer of choice” in its field.

The Fiji Revenue andCustoms Service (FRCS) has announced the appointment of Mr. Uraia Rasake as the Director People, Capability & Culture (PCC) effective from 21st August 2023. Mr. Rasake will be responsible for FRCS’s human resources strategy and operations including talent management, recruitment, training and development.

“I am pleased to welcome Mr. Rasake to the FRCS family at this important time of change that FRCS is undergoing,” said FRCS acting Chief Executive Officer, Mr. Malakai Naiyaga.

“I am also confident that Mr. Rasake’s extensive knowledge and experience will provide the necessary support required to grow our people and attain our strategic goal of becoming an “employer of choice”,” Mr Naiyaga said.

Mr. Rasake is a Human Resource Specialist and a certified Starwood Leadership, Service Culture and Brand Trainer and has over twenty -five years of experience in HR in both the public and private sectors with local, regional and international experiences.

Mr. Rasake has served at the senior executive level with internationally renowned resort brands including Sheraton & Westin Resort & Spa (Starwood), Pullman Resort & Spa (Accor), Warwick group of hotels, Vatulele resort, Fiji Development Bank (FDB) and the last being Six Senses Fiji (IHG). He is passionate about “People Development” and has developed a number of programs that would see locals self-develop and take on supervisor and management positions (Successful Transition Programs).

He also drives innovation and believes that if change “enhances the customer experience and/or drives revenue,” then we are on track for institutional success.

“I’m excited to be part of the FRCS team and look forward to working with the Executive Leadership team as we drive towards modernisation and refining FRCS’s service culture that would enhance the internal and external customer experiences and in turn drive productivity with opportunities to impact our strategic goals. Truly exciting times ahead,” Mr Rasake said.

The Fiji Revenue and Customs Service (FRCS) is thrilled to unveil the VAT Compliance Campaign, an innovative endeavor aimed at promoting transparency, comprehension, and adherence among taxpayers in Fiji. This initiative is of great importance following the recent Fiji Government announcement of the increase  in the VAT rate from 9% to 15%.

The VAT Compliance Campaign is a holistic program designed to establish a clear connection between taxpayers and the tax administration, assuring that all individuals and commercial entities understand their VAT duties. This campaign is aimed at fostering awareness, endorsing accountability, and encouraging VAT return compliance among all taxpayers.

The campaign will will be in stages:

Reminding and Training: FRCS will advise taxpayers about their pending VAT returns. This stage will also include training sessions on the Taxpayer Online Service (TPOS) to ensure every taxpayer is equipped with the knowledge to file their returns accurately and promptly.

Publishing TIN: FRCS will publish the Taxpayer Identification Numbers (TIN) of those who, despite reminders, fail to file their outstanding VAT returns. This publication will serve as a second reminder and will encourage those taxpayers to complete their filings.

Raising Default Assessments: Should there still be non-compliant taxpayers after the first two stages, FRCS will raise default assessments. This stage will help the authorities in identifying taxpayers still conducting business without complying with their VAT responsibilities.

Penalties and Prosecution: In the final stage, FRCS will enforce penalties for taxpayers whose VAT returns are outstanding and frequently lodge their returns late. There will be no waiver of late lodgment penalties in such cases. FRCS will also consider potential prosecution of those who consciously evade their tax responsibilities.

These stages together serve as a comprehensive strategy aimed at ensuring every required Fijian taxpayer understands, and complies with their VAT obligations,contributing to the economic prosperity of our nation.

The Fiji Revenue and Customs Service (FRCS) has collected a cumulative net revenue of $2.285b at the closure of the 2022-2023 fiscal year, exceeding the forecast by $33.3m or 1.5%. Total revenue collections also surpassed 2021-2022 fiscal year collections by $592.7m or 35.0%.

The positive out-turn stems from the outstanding July performance, which recorded net revenue of $213.9m with a positive variance of $22.6m or 11.8% against the monthly forecast.

FRCS Acting CEO, Mr. Malakai Naiyaga attributed the favourable cumulative collection to the performance of key tax categories such as Value Added Tax (VAT), which contributed $1.0b or 43.9% towards the total collections, Income taxes, contributed $623.9m or 27.2%, Trade Taxes, contributed $472.7m or 20.6% and Other Taxes & Levies contributed $188.8m or 8.2% of the tax mix.

Additionally, Mr. Naiyaga stated that the revenue achievement mirrors the earlier-than-anticipated overall economic recovery, underpinned by the consistently strong performance in sectors like Services, Wholesale & Retail Trade and Manufacturing.

“The positive variances observed in both the monthly and the annual collection point towards a significant overall economic recovery compared to a year ago. This recovery can be attributed to various factors, such as the services sector benefitting from increased tourism activity, higher income taxes paid by companies based on improved turnover and profits, and the pent-up consumer demand leading to increased VAT collections. These factors collectively contribute to the economic upturn, reflecting a positive trend across different sectors and fiscal aspects of the economy,” Mr. Naiyaga said.

Mr. Naiyaga added that the revenue performance has set a good platform for the new 2023-2024 fiscal year noting the $3.1b revenue target. FRCS will be working in partnership with our stakeholders and taxpayers to continue to develop a national culture of tax and customs compliance. Support will be provided to taxpayers to assist with tax filing and payment in addition to conducting various awareness and stakeholder forums for the 2023-2024 national budget.

The Fiji Revenue and Customs Service (FRCS) in collaboration with the Fijian Competition and Consumer Commission (FCCC) has formed a Price Surveillance Taskforce and the two organisations have intensified inspections and are closely monitoring the market to ensure that the changes in the VAT (Value Added Tax) rates and customs duties announced in the 2023/2024 National Budget are reflected correctly in the final prices and consumer interests are protected.

Effective from 1^st August 2023, the three VAT rates have been replaced with a simplified two VAT rate system. The 9% VAT has increased to 15% while the 0% VAT rate has been maintained. The 21 zero-rated VAT items have been increased to 22 items with the addition of prescription medicine and prescription drugs.

Additionally, import duties have been reduced on sheep and lamb meat, prawns, ducks, corned meat of lamb, sheep and beef, canned mackerel, canned tomatoes and chicken portions.

The FRCS team have also been conducting analysis of shipping and other related costs to verify the pattern of price changes.

FRCS Chief of Staff, Mr. Shavindra Nath stated that it is important to ensure that the intention of the budget policies announced by the government is achieved.

“When taxes or duties are reduced, the intent is to reduce the prices of these products and promote consumer choices. If the prices are not reduced, then it defeats the purpose of these changes. That is why it is critical for agencies such as FRCS and FCCC to monitor that these changes are correctly reflected in the prices,” Mr. Nath said.

“The VAT zero rating has been maintained and in fact, increased with the inclusion of prescribed medicine and drugs and the increase in VAT from 9% to 15% should not impact the prices of these zero-rated items,” he said.

“FRCS is aware that a large majority of retailers wish to comply with the law, and we are willing to help and guide them so that they can implement these changes correctly. However, instances of deliberate non-compliance will be dealt with strongly.”

“Cost of living is a matter that resonates deeply within our communities. It’s not just an economic issue; it’s a fundamental aspect of daily life that affects families across Fiji. The collaboration between FCCC and FRCS on Price Surveillance is more than a regulatory step; it’s an initiative aimed at safeguarding the welfare of our citizens,” said FCCC CEO, Joel Abraham.

“The new VAT system and duty reductions should make essential goods more affordable. We’re committed to ensuring these changes are accurately reflected in market prices, and any non-compliance will be met with decisive action.

Together with FRCS, we are working to ensure the government’s intentions become real benefits for our people, focusing not just on compliance but on enhancing their quality of life.”

The Fiji Revenue and Customs Service (FRCS) has announced the appointment of two new members to its Board of Directors, Ms. Nancy Tikoisuva and Dr. Neelesh Gounder. Ms. Tikoisuva and Dr. Gounder have been appointed in accordance with Section 4 of the FRCS Act 1998 for 3 years effective from 25^th July 2023.

FRCS’s Acting Chief Executive Officer, Malakai Naiyaga welcomed the highly talented individuals to the Board of Directors of FRCS.

“The new Board of Directors have valuable expertise and perspectives that will help provide effective strategic direction and oversight to FRCS,” Mr Naiyaga said.  The appointments are also reflective of youth, energy and balance which are required to support the processes and services transformation tasks FRCS is undertaking.

Ms. Tikoisuva is a Legal Practitioner with the law firm, Toganivalu Legal and simultaneously works as an External Academic with the University of the South Pacific (USP) and as a National Consultant with the Food Agricultural Organisation (FAO).

She obtained her Bachelor of Law (LLB) in 2003, Masters in Law (LLM) in 2022 from USP and was admitted to the bar in 2004.  Ms. Tikoisuva has 18 years of legal experience. She has served in the area of prosecution, specializing in serious financial crimes, money laundering and asset forfeiture as well as in private legal practice in civil litigation. Ms. Tikoisuva also conducts community legal awareness in child and environmental protection and domestic violence.

Additionally, Ms. Tikoisuva is a Board Director with the Maritime Safety Authority of Fiji and Leadership Fiji.

“I thank the Fijian Government for the opportunity to serve on the Board. It is a huge responsibility that I will not take lightly, and I hope to do justice to this position,” Ms. Tikoisuva said.

Dr Gounder is a Senior Lecturer in Economics and the Deputy Head of School (Research, Innovation and Postgraduate Affairs) with the School of Accounting, Finance and Economics at USP. He has a Ph.D. in Economics from the Griffith University in Australia. Dr. Gounder is also a Centre Associate at the Development Policy Centre, Crawford School of Public Policy at the Australian National University.

He was one of the members of the Fiscal Review Committee appointed by the Fiji Government to review the government’s revenue and expenditure strategies and policies and to provide recommendations for strengthening the fiscal framework.

“I thank the Minister for Finance for this appointment and look forward to contributing to the important work of the FRCS Board,” Dr Gounder said.