The general public are advised that the standard rate of Value Added Tax (VAT) will increase from 12.5 per cent to 15 per cent from January 1.
The Fiji Islands Revenue and Customs Authority (FIRCA) in a public notice, says that from that date all registered persons must charge VAT at 15 per cent on any sale of standard rated goods and/or services.
The change also applies to imported goods and to the receipt of imported services, which is subject to the VAT reverse charge.
The public notice said that VAT registered persons would be required to adjust their systems to accommodate the new rate.
For VAT inclusive sales, the new tax fraction is 3/23 (15/(100 + 15)), this means that for such sales, the charge levied will give rise to a VAT liability of 3/23 or 7.666 of the total charge.
Special provisions will be made for cases where the invoicing and/or payment for and delivery of goods and services spans the date of change as follows:
- Where invoicing and/or payment occurs before January 1, 2011 but goods/service delivered after the date, the good/services will be taxed at 15 per cent because VAT is charged at the time of delivery;
- Where the invoicing/payment occurs on or after January 1, 2011 but goods/service delivered before that date, the goods/services will be taxed at 12.5 per cent because goods/services were delivered before the change in the tax rate.
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