i Revenue and Customs Service is very concerned about non-lodgment of Value Added Tax (VAT) returns – by registered entities.

The FRCS today announced the commencement of the second phase of the “VAT Compliance Campaign”, a critical initiative aimed at ensuring fiscal responsibility and compliance, within the Fijian business community.

In this phase, the FRCS will be publishing the ‘Taxpayer Identification Numbers’ (TIN no.’s) of businesses, engaged in ‘Business-to-Business’ transactions, and who have failed to file their VAT returns.

The “VAT Compliance Campaign” is a comprehensive effort to enhance tax compliance, and optimize VAT revenue.

The campaign targets two distinct segments of non-compliant taxpayers: ‘Business-to-Business’ and ‘Business-to-Customers’ entities.

The FRCS, based on advanced data analysis techniques, has
identified that there are a total of 2,972 businesses (Suppliers), who have issued VAT Inclusive Price invoices, to other VAT-registered businesses (Customers) – but have not fulfilled their obligation to file VAT returns.

This non-compliance behavior has resulted in Customers claiming VAT input credits in their VAT returns, leading to a distortion in the VAT revenue stream.

The 2,972 taxpayers are required to lodge all their outstanding VAT returns, by the 29th of February this year.

Should there be a failure on their part to update their VAT returns by the due date, the FRCS will raise a default assessment, and may impose penalties, or consider prosecution as prescribed within the Fijian tax laws.