FRCS wishes to advise businesses and members of the public that credit card surcharges and payment processing fees are exempt from VAT where they relate to financial services.

Under the VAT Act 1991, VAT applies to taxable supplies, while certain supplies, including financial services, are exempt under Schedule 1.

Treatment of Payment Processing Fees
Payment processing services may include credit card processing, banking intermediation, and electronic payment facilitation.
Where these fees represent charges for payment processing or similar financial services, they are exempt from VAT, whether separately disclosed or recovered as part of the payment process.

VAT-registered persons are encouraged to:

• Review pricing and invoicing practices.
• Apply the correct VAT treatment.
• Update fiscalisation settings, where necessary.

FRCS will continue to monitor this matter to ensure consistent application of the VAT Act.

For more information, please email us on: vat@frcs.org.fj

Last Updated - June 25, 2026