Fiji VAT Crackdown: FRCS Targets Thousands of Non-Compliant Taxpayers

The Fiji Revenue and Customs Service (FRCS) is set to implement enforcement actions targeting over 3,000 VAT-registered taxpayers who have been found non-compliant with Value Added Tax (VAT) regulations. This decision follows a series of public notices and the introduction of a 2025 tax amnesty program, which, according to the FRCS, did not yield the desired compliance results.

The FRCS noted that a significant number of taxpayers are still collecting VAT and issuing VAT-inclusive invoices, yet they either fail to submit their VAT returns or incorrectly submit NIL returns. This non-compliance has led to the identification of 2,489 taxpayers who have not lodged their VAT returns, while another 1,201 have submitted NIL returns despite recording VAT-inclusive sales. The FRCS has highlighted that the failure to remit collected VAT to the agency is a serious offence that jeopardizes the integrity of Fiji’s tax system and deprives the government of essential revenue.

The enforcement measures will include raising default assessments for all outstanding VAT periods, imposing penalties under the Tax Administration Act of 2009, withholding or canceling Tax Compliance Certificates, and initiating debt recovery actions. These actions may encompass garnisheeing bank accounts, placing charges on property, bankruptcy proceedings for unpaid debts, and pursuing prosecution for those who remain non-compliant.

Taxpayers are urged to settle all outstanding VAT returns and payments by February 28, and those with existing arrangements have until the end of the month to comply. The FRCS has also encouraged non-compliant taxpayers to utilize the Taxpayer Online Services (TPOS) to rectify their submissions and has indicated it may consider a Time To Pay Arrangement (TTPA) for genuine cases of financial hardship, provided that prior arrangements are made.

This proactive approach aims to strengthen Fiji’s tax compliance landscape and ensure that all taxpayers fulfill their obligations to support the nation’s revenue collection efforts.