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VMS FAQs

Contents

Legislative Requirements

Operating Electronic Fiscal Device systems

Potential Costs

Steps to become compliant

General

 

Legislation Requirements 

What is the Tax Administration (Electronic Fiscal Device) Regulations 2017? 

The Tax Administration (Electronic Fiscal Device) Regulation 2017 has been introduced to support the installation, implementation and operation of the Electronic Fiscal Device system. The law is intended to help businesses improve their management, ease administrative procedures and crack down on tax evasion, which will eventually lead to fair competition

 

Who is required to install an EFD?

The Tax Administration (Electronic Fiscal Device) Regulations 2017 provides the legal framework for implementing EFDs. Under Regulation 28, the Minister will specify by notice in the Gazette, the group of businesses that are required to implement an EFD and the period of time to become compliant. These industries have been identified;

  1. Group 1 – Supermarkets & Pharmacies
  2. Group 2 – Accounting Firms, Medical Centres, Travel Agencies, Law Firms & Hardware
  • Group 3 – Accommodation, Architecture & Engineering, Commercial health care services, Construction, Food services, Freight operators, Real estate agents, Service stations & Wholesalers & manufacturers

 

Are all manufacturers required to implement an EFD system?

This applies to dealers, traders, manufacturers, wholesalers and distributers of goods for sale that purchase great quantities of goods for resale. Hardware companies, supermarkets and pharmacies that are wholesalers or manufacturers are included in this group.

 

Can we continue to issue manual invoices now that we have the EFD system? 

 As per the Section 17- (1) of the Electronic Fiscal Device Regulation 2017;

 A taxpayer is responsible for ensuring that, at each business of the taxpayer-

  • A fiscal invoice is issued to a customer for each transaction between the business and the customers.

 

Who are the accredited POS suppliers? 

All POS vendors/suppliers go through a rigorous accreditation process with the Fiji Revenue & Customs Service (FRCS) before they are given accreditation and approval to market their solution to businesses or operate the EFD system (in the case of a custom-built in-house system). The list of approved systems and vendors/suppliers is published on the FRCS website. The list is updated as and when vendors/suppliers are given accreditation. It is the responsibility of the business owner to engage ONLY approved vendors/suppliers to install this system.

 

Operating Electronic Fiscal Device systems 

What is an Electronic Fiscal Device (EFD)? 

The EFD is an electronic fiscal device system comprising of a Point of Sale system (POS) and Sales Data Controller (SDC) that is connected and produces fiscal invoices. It includes a secure element that transmits the fiscal data to the FRCS system.

 

How will the EFD actually work?

When a sale is made, the POS sends the transaction data to the SDC. The SDC includes a secure element that formats the data into a fiscal invoice, attaches a digital signature and transmits this back to the POS. At this point, the receipt can be printed.
Whilst this process is ongoing, the SDC is also sending fiscal data to the FRCS system. Taxpayers and customers can log onto the system to verify the receipt information that is being captured. The entire process is very quick and should not affect printing of receipts for customers.

 

How does Fiji Revenue & Customs Service (FRCS) control the EFD? 

The EFD is audited by Revenue & Customs using special methods like receipt signature verification, remote audit and copying sales data stored in the E-SDC.

Digital certificates are issued for each EFD and authenticates the EFD when it links to the Revenue & Customs system. It contains the public and private key that will create, produce and verify the digital signature of the EFD. The certificate must be renewed annually for continued operation.

 

I do not know how to use a computer. Is there another way to comply?

There is more than one way to implement an EFD system. The EFD can be implemented on your tablet or android device. Under the EFD regulation, it is the responsibility of the business owner to identify the right solution. If the business owner decides to use the FRCS free app, we will provide training.

 

Which printer can we use?

You can use a normal office printer or thermal printers as long as receipt details are clearly visible and the QR code can be scanned.

 

What happens if my printer doesn’t work at certain times?

You can still use the EFD system to record your sale and use the email option to send the receipt to the customer.

 

Potential Costs 

Will this become an added administrative burden for taxpayers? 

The administrative burden on taxpayers will eventually reduce as data will be captured electronically and stored in the Revenue & Customs system. FRCS auditors can access the fiscal data on the system to view sales transactions and related taxes. In addition, VAT returns processing should be more efficiently processed as the fiscal invoices being claimed are available online.

 

What is the estimate cost of an EFD? 

This is difficult to estimate as it will depend on a range of factors such as brand, model, upgrade vs new, market presence, etc. Suppliers offering a wide range of products should enable a competitive market and potentially keep costs reasonable. Ongoing operating costs include paper for receipts and communication charges for SIM card or internet connectivity.

 

If taxpayers already have an invoicing system, they must check with the supplier of their system and verify if the system is compliant. The same accreditation process is applicable. You can always verify if an EFD is compliant by issuing one transaction and scanning the QR code. If the code guides you to the Revenue & Customs verification page, you will be able to verify the transaction.

 

I have a small business and cannot afford to pay a POS supplier. 

FRCS has developed the Free FRCS POS to assist small businesses with compliance however the Free FRCS POS is a very basic system with limited functionalities. The system was designed to assist with compliance and not compete with the POS suppliers. Normally taxpayers require additional features to enable wider reporting and accounting of transactions.

 

Do I need to purchase a computer/laptop? 

If you are using the Free FRCS POS, it is accessible on an android device or tablet. A computer/laptop might be required if you decide to engage a POS supplier.

 

What do I do if my card is misplaced/stolen? 

Report this immediately to FRCS so that your card can be revoked. You will then need to re-register and pay a fee to obtain another card.

 

How do we purchase a card reader? 

The card readers are available on the open market. You can check stores which retail computer equipment or you can purchase one from FRCS. If you opt to buy a reader from FRCS, you can deposit the required sum or make payment at the FRCS Finance section in Suva.

 

  • Direct deposits should be deposited to:
  • Fiji Revenue & Customs Service
  • Narration:  Card reader – (Business Name)
  • ANZ Bank
  • Account # 5190959
  • Amount $50.00

 

Scan the deposit slip to EFDCompliance@frcs.org.fj or provide this directly to the Finance section before collecting a card reader. You can also opt to have the reader sent to an FRCS office which is closer to you.

 

Steps to become compliant 

Do I need to do anything before registering for EFD? 

  1. You will be required to fill in the Information Update Form which can be found on our website or at any of our offices around the country
  2. Once the form is filled, you can either email the form to datacleansing@frcs.org.fj OR drop it at any of our offices around the country.
  • FRCS will update your tax information and send you an email confirmation.
  1. Upon receiving the email confirmation, you can then register for EFD system

 

How do I register for the Electronic Fiscal Device System? 

  1. You will need to log onto the FRCS website using this link https://eservices.frcs.org.fj/EFD
  2. Choose what you are registering for E.g. A business from the VMS industry OR a POS/ESDC supplier
  3. You will be asked to:
  • Enter your TIN
  • Enter your current POS name (If you don’t have any put None)
  • Enter your POS supplier (If you don’t have any put None)
  • Enter your POS supplier phone (Fill in your phone number)
  • Enter your POS supplier email (Fill if the email address of the authorized officer)
  • Choose which industry your business falls under
  • Click Submit

 

What do I do when I receive the email invite? 

You will be asked to:

  1. Choose a 4 Digit PIN (Do not forget the PIN code you choose; we suggest you write it down)
  2. Choose the card format as Full Format
  • Choose which option you would like to receive your passwords (We suggest through email so you can always refer to it)
  1. Click on submit.

 

What do I do if I do not receive the email invite within 3 hours? 

You can send an email to the VMS team on EFDCompliance@frcs.org.fj

 

Where do we pick the smart card from? 

All smart cards are produced at the FRCS office in Suva or Lautoka. Depending on which office you have selected as the preferred collection point, we will dispatch it to the identified FRCS office. Smart cards will not be posted due to security and confidentiality reasons.

 

What if taxpayers already have an invoicing system? 

Electronic Fiscal Devices (EFDs) are designed to suite every business environment. If a taxpayer already has an invoicing system, they must first check on the system technical requirements to become compliant. Whatever system is being used, it will likely need to be upgraded in order to comply with the requirements. Taxpayer should provide rollout plans to ensure they comply within the specified period to implement an EFD.

 

Some suppliers may drag their feet or even give up on the Fiji market altogether. Taxpayers do not want to be vulnerable to fines and penalties just because a supplier didn’t get around to this upgrade in time. If there’s any doubt that some suppliers will comply with the rules, taxpayers should consider signing with a supplier that can prove its system supports the new rules today, and get in line for the upgrade before the mad rush as the deadline gets closer.

 

Taxpayers with an aging invoicing system that is not performing to expectations should consider changing their system. Why not upgrade to a more modern, powerful system that will do more? It’s a good time to learn more about choices since taxpayers will have to upgrade anyway. Every new upgraded system supports inventory control and management reporting. These will pay back with savings on shrinkage and waste alone.

 

Taxpayers with no electronic invoicing system should consider getting one. A basic EFD system with one workstation will pay for itself in about six months with faster operations and fewer mistakes. Plus, taxpayers will have peace of mind knowing they comply with the regulations.

 

General 

Do I need a Taxpayer Identification Number (TIN)? 

Yes, you are required to have a TIN in order to register for the EFD system

 

How will a customer/shopper know the receipt hasn’t been tampered with? 

The printed receipt will include a Quick Response (QR) Code. You can scan the code using a QR reader (such as Neo Reader app) on your smartphone. Once the code is scanned, it will open the verification website link and a copy of the receipt will be displayed.

 

Customers also play an important role in our compliance strategy. Regulation 19 clarifies the role and responsibilities of customers. We encourage customers to ask for receipts. Customers will be able to detect if receipts have been tampered with.

 

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