12th May, 2017
The Fiji Revenue and Customs Authority is clamping down on businesses and individuals who falsely imply that they are registered for VAT by listing their Tax Identification Number (TIN) on invoices.
Non-VAT registered persons are only allowed to issue a valid “Invoice” when making a sale to its customer(s). They are not allowed to issue a “Tax Invoice” as this will only be issued by a VAT registered person.
“They should not charge VAT on the value of the supplies and their invoice should clearly state that the value of the goods is quoted in VAT Exclusive prices (VEP). By falsifying invoices, the business is not only defrauding its customers but the Fijian Government as well”, FRCS Chief Executive Officer Mr. Visvanath Das said.
“In the past we have investigated some companies for VAT Fraud and systematic Tax Evasion. Some companies have been using fictitious invoices to claim VAT refunds. In one instance, the VAT claim of a company was actually more than its total sale for that particular month”, Mr. Das stressed.
“We continue to discover serious non-compliant behavior in terms of fictitious claims and non-lodgment of VAT returns and due payments. Whilst FRCS is encouraging self- assessment and voluntary compliance, we are disappointed with the extent that some businesses and individuals will go to abuse the system.”
“Our officers are on the ground carrying out routine inspection and are willing to assist businesses and taxpayers who require assistance in filing their returns”.
FRCS will not tolerate such corrupt practices and offenders will face the full brunt of the law in terms of being prosecuted and fined up to 300% of the tax shortfalls.
Everyone in Fiji is eligible to pay tax which helps support and grow our economy.
For queries please contact the Public Relations Department on 3243031/3243505.