The Fiji Revenue and Customs Services (FRCS) is gearing up for the complete rollout of the Value Added Tax Monitoring System (VMS) targeted at businesses with an annual turnover of $50,000 or more, anticipated to be finalized by January 2026. This initiative, shared by FRCS Chief Executive Udit Singh during a recent session with the Standing Committee on Foreign Affairs and Defence, aims to enhance transparency, reduce the occurrence of underreporting, and further support the digitization of small and medium enterprises (SMEs).
The VMS, introduced in phases since 2017-2018, has already seen implementation across seven different sectors, including supermarkets, pharmacies, hardware stores, travel agencies, accounting firms, law practices, and medical services. With the new plans, the FRCS expects compliance to improve significantly among businesses that might have been evading tax by staying just below the $100,000 threshold.
Singh described the rationale behind the new measure stating, “We observed that many businesses were intentionally remaining below the threshold to evade taxes. We implemented this system to not only ensure compliance but also to promote digitization at the lower end of our economy, aiming for greater overall transparency.”
The financial implications for businesses, as indicated by Singh, will largely rest with the individual enterprises; they will bear the cost of acquiring and maintaining the VMS. To ease the burden, FRCS is exploring affordable Point of Sale (POS) solutions, which could cost businesses between $50 to $70 per month, and an additional one-off daily charge.
In terms of implementation, a newly established schedule will incorporate real estate agencies, architects, and engineering services in January 2026, while the accommodation sector will follow suit in March for those with turnovers under $5 million. Major hotels and larger accommodation providers will be brought on board by September, with wholesalers, distributors, and retailers scheduled for integration by December 2026.
This concerted effort aligns with previous initiatives aimed at modernizing tax administration and enhancing compliance. The FRCS has emphasized the need for proactive engagement with businesses to facilitate a smooth transition, acknowledging past challenges while assuring ongoing dialogue and support will be integral to the rollout.
As the government progresses in enhancing Fiji’s economic landscape, these initiatives represent a positive shift towards stronger fiscal responsibility and improved business conditions. By prioritizing transparency and collaboration, Fiji is poised to strengthen its economic foundation while supporting local enterprises effectively.
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