FRCS would like to advise all VAT registered taxpayers on Time of Supply rules.
Time of Supply Rules:
The time of supply determines when a supply is treated as taking place for VAT purposes. It is when the liability to account for tax on the supply arises.
Under the general time of supply rules in Section 18(1) of VAT Act 1991 , a supply is deemed to take place at the earlier of when:
A. A tax invoice is issued by the supplier or the recipient:
- normally issued by the supplier; and
- in a self-billing situation may be issued by the recipient4; or
- any payment is received by the supplier:
B. Any payment is received by the supplier:
- time of supply occurs when any payment is received; and
- on the payment of a deposit, the full supply is deemed to take place at that point; or
C. The delivery of the goods and services takes place.
Example
Delivery Date | Payment Date | Tax Invoice Date | Time of Supply | VAT Rate |
28 July 2025 | 30 September 2025 | 28 August 2025 | 28 July – date supplied | 15% |
7 September 2025 | 7 July 2025 | 7 July 2025 | 7 July- date paid | 15% |
1 August 2025 | 1 August 2025 | 30 July 2025 | 30 July- tax invoice date | 15% |
3 August 2025 | 2 August 2025 | 2 August 2025 | 2 August- tax invoice/payment date | 12.50% |
The time of supply rule enables the VAT registered person to declare and claim VAT in the applicable month. The “Time of Supply” and “VAT Rate” columns above show the rates and the months that output VAT and input VAT should be declared and claimed accordingly.
There may be circumstances where the time of supply is “deemed” to take place. A VAT registered businesses will have to account for the VAT collected at that time.
Examples:
Details of supply | Time of Supply |
Coin or token operated machines. | When the coins or tokens are removed or emptied from the machine. |
Layby Sales. | When title of the goods passes to the buyer. This usually occurs when the purchaser makes the last payment to the vendor and takes the goods. |
Hire purchase agreements and periodic payments. | When the payment is due or received whichever is the earlier. |
Construction industry, where progressive payments occur. | The earlier of three below: • Payment becomes due. • Payment is received. • Tax invoice relating to that progressive payment is issued. |
A VAT registered business must also account for the VAT component on the full value of the goods or services supplied even if it receives goods or services instead of money as payment.
For further assistance, please contact us on 3243000 or toll-free line 1326 or email info@frcs.org.fj/vat@frcs.org.fj. Gold Card members can email at goldcardservices@frcs.org.fj .
Last Updated - February 4, 2026