The Fiji Revenue and Customs Service (FRCS) has identified 2347 entities that haven’t lodged VAT returns worth $401.6 million between 2020-2023.
FRCS chief executive officer Udit Singh said they were launching the third phase of the VAT compliance campaign to target entities not paying VAT despite continuing their business operations and issuing VAT inclusive price (VIP) invoices.
“It has come to our attention that for the years 2020–2023, there were 2347 entities issued invoices with VAT-inclusive prices (VIP) surpassing $100 to other VAT-registered entities,” said Mr Singh.
“These taxpayers have submitted nil VAT returns for the corresponding periods which comes to $401.6m in VIP sales. This non-compliant conduct has enabled taxpayers to claim VAT input credits in their VAT returns.
“Additionally, it has been observed that certain taxpayers use multiple taxpayer identification numbers (TINs) through which they declare income and issue VIP invoices.
“Some of these taxpayers are submitting nil returns using different TINs than the ones under which their income has been declared. The TINs for which the VAT has been claimed and from which the service has been provided must match.”
Mr Singh said FRCS was committed to fostering tax compliance and providing support to taxpayers in meeting their obligations.
“FRCS wishes to advise that it is a serious offense under Section 71 of the Value Added Tax Act 1991 to knowingly lodge a false VAT return.”
The non-VAT paying entities have until June 30, 2024 to amend their VAT returns voluntarily.
