The Fiji Revenue and Customs Service (FRCS) reminds all VAT-registered businesses of the requirements relating to the use of approved VAT accounting methods.

VAT Accounting Methods
Invoice Basis (Accrual Method)
Revenue and expenses are recognised when they are incurred, usually when an invoice is issued or received.

Payment Basis (Cash Method)
Revenue and expenses are recognised only when payment is received or made. The key difference between the two methods is the timing of recognising income and expenses.

Eligibility for Payment Basis
A VAT-registered business may only use the Payment Basis with prior approval from the FRCS Chief Executive Officer. Approval may be granted if the business:
– Is a public or local authority, or a non-profit organisation; or
– Has taxable supplies of less than $100,000 within a 12-month period.

All other VAT-registered businesses are generally required to use the Invoice Basis.

Compliance and Penalties
-Late lodgement of VAT returns: 20% of unpaid tax, plus 5% for each subsequent
month of default.
– Late payment of VAT: 25% of unpaid tax, plus 5% for each subsequent month of
default.
– Failure to file a VAT return: $1 penalty for each day of default.

For more information or assistance, please contact us on our toll-free line 1326, or landline 3243000 or email: info@frcs.org.fj

FRCS encourages all taxpayers to ensure the correct VAT accounting method is applied and to meet all filing and payment obligations to avoid penalties.

Last Updated - 1 day ago