The Fiji Revenue and Customs Service (FRCS) has announced that the Value Added Tax (VAT) Monitoring System (VMS) will be implemented for various sectors, including supermarkets, pharmacies, accounting firms, medical centers, travel agencies, law firms, and hardware companies, starting December 31, 2024. This initiative was highlighted in the national budget for the period of 2024-2025 and signifies the re-activation of VMS, which was initially set to take effect from August 1, 2024.
FRCS CEO Udit Singh emphasized the importance of compliance for businesses that fall under the categories specified in the VMS phases one and two. Following recent physical verifications, it was found that several businesses have not adhered to compliance standards. The agency has mandated that all affected businesses install, implement, and operate an Electronic Fiscal Device (EFD) before the December deadline. This includes the accreditation of each Point of Sale (POS) and Electronic Fiscal Signature Device (E-SDC) to ensure proper function within the VAT monitoring framework.
This initiative aims to enhance tax compliance and streamline the monitoring of VAT collection, ultimately contributing to improved revenue management for the government. Businesses are encouraged to start preparing for this transition to avoid penalties and ensure a smooth integration of these necessary systems.
In summary, the upcoming VAT Monitoring System implementation is a clear step towards modernizing and ensuring transparency in Fiji’s tax collection processes, allowing businesses to be better equipped in managing their tax duties while fostering a fairer economic environment.
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