THE Fiji Revenue and Customs Service (FRCS) has clarified that the recently lowered threshold for the VAT Monitoring System (VMS) is separate from the existing VAT registration threshold.
Responding to questions during a post-Budget breakfast in Suva on Saturday, FRCS chief of staff Shavindra Nath said although the system was commonly referred to as ‘VMS’, it technically falls under the broader category of electronic fiscal devices and its purpose extends beyond just value-added tax (VAT).
“I think because it is called VMS, it is largely associated with VAT. However, the formal terminology is electronic fiscal device,” Mr Nath said.
“So it has to do with all the other taxes, and this year we have not changed the threshold for VAT but just reduced the implementation threshold for VMS from $100,000 to $50,000 per year.”
The revised threshold for VMS compliance applies to businesses with an annual turnover of $50,000 or more, and the new requirement will take effect on January 1 next year.
Mr Nath said affected businesses would have sufficient time to adjust and implement the necessary changes.
“You’ve got another five to six months to implement that.”
To support the transition, FRCS is adopting what Mr Nath described as a “partnership approach” and will engage with affected taxpayers to ensure compliance.
He said the new system would be implemented in a cost-effective manner.
“It will be done through a free POS (Point of Sale system) and the cost will generally be less than $100.”
Mr Nath also noted all affected businesses were already registered with FRCS and regularly submitted income tax returns, meaning the agency had access to their turnover data to determine eligibility.
The clarification comes amid questions from the post-budget breakfast regarding how the lower VMS threshold aligned with the current VAT registration limit of $100,000, which remained unchanged in the 2025–2026 national budget.
Note: This article was first published on the print version of the Fiji Times dated July 3, 2025
