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FRCS Launches the VAT Guide

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.

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