close
Share with your friends

Fiji – indirect tax guide

Fiji – indirect tax guide

Explore the requirements and rules that apply to indirect taxes in Fiji.

1000

Related content

Palm trees blowing over the water

General

Type of indirect tax:

VAT.

Standard rate:

9 percent (from 1 January 2016).

What supplies are liable to the standard rate?

Supplies of goods and services or the import of goods made by a registered person or a person who is deemed to be registered.

Are there any reduced rates, zero- rates or exemptions and if so, what do they apply to?

There are no reduced rates.

VAT-exempt supplies include financial services; education by an educational institution; life and medical insurance; and goods and services donated by a non-profit body.

Zero-rated supplies include exports (subject to certain conditions); water and sewerage services; international travel and transport services; and international inbound telecommunication services.
 

VAT/GST registration

Who is required to register and what is the threshold?

Every person who carries on a taxable activity with annual turnover exceeding 100,000 Fijian dollars (FJD).

Produce suppliers and persons providing exempt supplies are not required to be registered.

Is voluntary registration possible?

Yes.

Is voluntary registration available for an overseas company or a fiscal representative?

No, unless that overseas company is carrying on business in Fiji and making taxable supplies.

VAT/GST compliance

What is the typical frequency of returns?

Taxpayers with annual turnover exceeding FJD300,000 are required to file monthly VAT returns. Taxpayers with a turnover of less than FJD300,000 may apply to the Commissioner for quarterly or annual filing.

VAT/GST recovery

Are there any items that a registered business cannot recover VAT on?

Where VAT input credits are associated with non-taxable activity or provision of a fringe benefit, a corresponding VAT output adjustment is required to be made to offset the initial VAT input claimed.

A VAT-registered person cannot claim an input tax deduction in respect of any VAT exempt purchases, or where the purchases relate to an exempt activity.

Can an overseas company recover VAT if it is not registered?

No.

How long does it typically take to obtain a VAT refund following a return filing?

3 to 6 months. The obtaining of VAT refunds needs to be ‘managed’ (i.e. followed up with the tax authority as refunds are generally not automatically/systematically approved).

Invoices

Are there specific requirements for the content of invoices to be considered valid for VAT purposes?

Yes, invoices must include the words ‘tax invoice’; the name and tax identification number of the registered person; and the VAT amount charged. However, where a supply is made by a retailer for an amount less than FJD100, a statement on the tax invoice that the price is VAT inclusive (VIP) is sufficient.

Fiscal invoices must be issued by taxpayers in accordance with the Tax Administration (Electronic Fiscal Device) Regulations 2017 which came into effect on 1 June 2017. This law requires businesses to electronically transmit transactional sales data to the Fiji Revenue & Customs Service (FRCS) using an accredited electronic fiscal device (EFD) system comprising a point of sale (POS) device and a sales data controller (SDC). Digital certificates are issued for each EFD and authenticates the EFD when it links to FRCS. Among other details, a QR code is a distinguishing feature of a fiscal invoice.

Special indirect tax rules

Does a reverse charge or indirect tax withholding mechanism apply?

Yes.

Rulings

Is it possible to apply for formal or informal advance rulings from the tax authority?

No, while the law provides for the possibility of seeking a ruling it is not currently in force. In the absence of a binding ruling regime, commentary by the tax office is not binding on the Commissioner.

Other indirect taxes

Are there any other indirect taxes that apply in the jurisdiction?

Other indirect taxes include the following:

  • stamp duty
  • customs duty
  • gambling turnover tax
  • water resource tax
  • fringe benefits tax
  • service turnover tax
  • environment and climate adaptation levy
  • telecommunication levy.

Contacts

Lisa Apted
KPMG in Fiji
E: lapted@kpmg.com.fj

Disclaimer

All information within this guide is provided by KPMG professionals in Fiji and based on information available as of September 2019.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal