The Fiji Revenue and Customs Service has kept the third phase of the VAT monitoring system on hold for over seven months now.

The system’s primary objective is to promote voluntary tax compliance, but as the delay in its review persists, the risk of the government failing to secure income from businesses that should ideally be tax-compliant continues to grow.

This has been highlighted by Acting Chief Executive Officer Malakai Naiyaga, who explained the rationale behind the suspension of the VAT monitoring system.

Meanwhile, Principal Auditor Seleti Tawaketini says the recently launched VAT Guide content system will be reviewed once there is a change in the current VAT legislation.

The VMS software will be seamlessly integrated with the cash registers of companies and business operators, offering FRCS real-time access to comprehensive data on total company sales and VAT collections.