Fiji – indirect tax guide
Fiji – indirect tax guide
Explore the requirements and rules that apply to indirect taxes in Fiji.
General
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
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.
Rulings
Other indirect taxes
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.