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2023 – 2024 National Budget – Zero-Rated VAT Items

FRCS would like to inform the public that the items listed below continue to enjoy zero-rated VAT, with the new inclusion of prescribed medicines or drugs.

As of 1 August 2023, the previous three-VAT rates system has been replaced with a more streamlined two-VAT rate system.

The VAT rate of 9% has been raised to 15%, while the 0% VAT rate remains unchanged. Businesses and consumers are informed that the items listed in the table below are zero-rated from VAT. Consequently, no VAT-related price increase should be applied to these items.

Download the PDF on this Link.

No.

Item

Description

1

Baby Milk

Includes products such as Lactogen, SMA, S26, Farley’s, etc.

2

Canned fish

All kinds of canned fish such as mackerel, tuna, sardines, salmon, anchovies, etc.

3

Cooking Gas

All cooking gas sold in cylinders.

4

Cooking Oil

Includes all edible vegetable oil products such as soya bean oil, canola oil, olive oil, coconut oil, mustard oil, and other vegetable oil.

5

Dhal

These also include all types of dhal such as split peas, toor dhal, moong dhal, urdi, etc. It also includes other dried leguminous vegetables such as peas, chickpeas, moong, kidney beans, cow peas, etc. The category excludes dhal/ lentils in powdered form (besan/pea flour) or packaged in a can.

6

Flour

Includes flour made out of wheat only such as normal flour, sharp and whole meal/roti flour and excludes rice flour, corn flour, pea flour, self-raising flour etc.

7

Garlic

Includes only common fresh garlic and excludes all other forms such as dried, powdered, sliced, frozen, processed, and packed, etc.

8

Kerosene

A flammable hydrocarbon oil used as fuel in lamps and heaters.

9

Liquid Milk

Includes all types of dairy liquid milk whether full cream or low fat. This category only includes dairy milk and excludes non-dairy milk such has almond milk, soy milk and milk from other vegetables.

10

Onion

Includes all types of onion but excludes onion in other forms such as powdered, dried, or processed and packed.

11

Potato

Includes all types of potatoes in raw form including baby potatoes and washed potatoes and excludes potatoes in processed form such as French fries, wedges, hash brown, etc.

12

Powdered Milk

Includes all types of powdered milk including full cream and low fat and excludes products such as condensed milk.

13

Rice

Includes all types of rice including basmati, jasmine, long grain rice, brown rice, etc.

14

Salt

Includes normal salt and excludes products such as monosodium glutamate (MSG).

15

Sanitary Pads

Includes all types of sanitary towels (pads), tampons, etc.

16

Soap

All types of bar soaps but does not include liquid hand wash and dishwashing paste.

17

Soap Powder

Includes all types of detergents in the form of powder, liquid and paste including cleaning detergents.

18

Sugar

Includes only brown/raw sugar and excludes sugar in other forms such as castor, icing sugar, white sugar, cube, candy etc.

19

Tea

Includes tea of all types and packaging and excludes products such as bottled iced tea.

20

Toilet Paper

The category excludes products such as tissues, serviettes, paper towels, etc.

21

Toothpaste

All types of toothpaste in tube form and excludes other products for oral dental hygiene such as mouthwash, floss, etc.

22

Prescription Medicine or Prescription Drugs

Includes all medicines or drugs prescribed by a registered medical doctor whether it is over the counter or packed separately. It also includes “Repeats” as it originated from a prescription.

Consumers are strongly encouraged to exercise vigilance and ensure that tax invoices or receipts issued by “VAT Registered” businesses for the mentioned zero-rated items accurately reflect the 0% VAT.

For any further clarification, please call 3243000 or 1326, or e-mail vatteam@frcs.org.fj

 

Mr. Malakai Naiyaga

 ACTING CHIEF EXECUTIVE OFFICER

7th August 2023

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