VAT Monitoring System
29th May, 2017
The Fiji Revenue and Customs Authority (FRCS) will roll out its VAT Monitoring System (VMS) project soon with supermarkets being the first sector to have these gadgets implemented with.
The objective of the VAT monitoring system is to have efficient and reliable software to encourage voluntary tax compliance and at the same time collect the much needed revenue for the government which is currently being evaded.
The VMS software which will be linked to the company’s cash register, will provide a real time data to FRCS on total company sales and the amount of VAT collected.
“We have already selected the vendor who will provide software for this project and after fine tuning some issues, we are now ready to implement VMS which will enhance administration of VAT in Fiji,” FRCS Chief Executive Officer Mr. Visvanath Das said.
“Fiji loses more than $250m annually due to fraudulent practices by some businesses in the country. Thorough investigations by FRCS reveals that a number of supermarkets are involved into unethical practices by having additional cash registers over claiming of expenses and allegedly falsifying sales data, which are not in the company’s books of records.”
FRCS will treat any falsified VAT return with all seriousness and offenders will have to face the full brunt of the law including imprisonment. This system will definitely improve monitoring of VAT collection in Fiji,” Mr. Das said.
“There is a significant leakage in Fiji’s tax system and we all need to play our part to collect this money that will be ultimately invested back into our economy. Millions of dollars in income go unreported through the informal economy or through simple tax evasion because of the lack of a credible system to monitor these businesses and individuals”.
“The VMS project will not only benefit the tax office but will be of great assistance to the businesses communities as well. The businesses will benefit in terms of more straightforward administrative procedures, increased certainty and reduced administrative costs since FRCS will have all the sales data,” Mr. Das stressed.
“Our aim is to create a level playing field for all Fijians. There are some very compliant taxpayers who always pay their fair share of taxes on time and it is unfair on them if we let go of those who evade taxes and do not file in their returns on time nor pay taxes on time.”
For queries please contact the Public Relations Department on 3243031/3243505.