The Fiji Revenue and Customs Service (FRCS) has issued a strong warning regarding the non-compliance with Value Added Tax (VAT) regulations, indicating that it will no longer tolerate delays or failures in lodging VAT returns. According to FRCS, a staggering 2,489 VAT-registered taxpayers have not submitted their required VAT returns, even as they continue to record VAT-inclusive sales.
Moreover, the tax authority has flagged an additional 1,201 VAT-registered taxpayers who submitted nil VAT returns despite reporting VAT-inclusive sales. This lack of compliance has persisted despite previous public advisories, the introduction of the 2025 Tax Amnesty Program, and extensions for lodging returns.
FRCS emphasized that failing to remit collected VAT is a serious offense and significantly undermines the integrity of Fiji’s tax system. This non-compliance not only hinders the government’s ability to fund essential public services but also weakens the overall economic framework.
As a course of action, FRCS has announced that it will enforce penalties without any further warnings. This will involve raising default assessments for outstanding VAT periods, enforcing penalties as per the Tax Administration Act 2009, and potentially cancelling or refusing Tax Compliance Certificates for non-compliant taxpayers.
In the event of continued non-compliance, the FRCS may initiate debt recovery measures such as garnishing bank accounts, placing liens on property, commencing bankruptcy proceedings for outstanding debts, and even prosecuting those who fail to comply with VAT regulations.
The FRCS strongly advises affected taxpayers to take immediate action by submitting any overdue VAT returns or correcting erroneous nil submissions via the Taxpayer Online Services (TPOS). Accurate reporting of VAT-inclusive sales and clearing any outstanding VAT payments along with penalties is crucial to maintain compliance and support the country’s economic health.
This call to action serves as a reminder of the importance of adherence to tax responsibilities, as the collective effort is vital for the growth and sustainability of public services in Fiji.
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