The Value Added Tax (VAT) system in Fiji has undergone several changes since its introduction in 1992. VAT is a consumption tax levied on the sale of goods and services, and it plays a crucial role in the country’s revenue system.
Over the years, Fiji has adjusted its VAT rates and tax fractions to align with economic goals, respond to inflation, and manage the cost of living for its citizens.
This historical overview outlines the key changes in VAT rates and tax fractions from 1992 to the present, highlighting how these adjustments have impacted businesses and consumers in Fiji.
VAT Rates in Fiji (Historical Overview)
| Year | VAT Rates | Tax Fraction |
|---|---|---|
| 01/08/23 (New) | 15% | 3/23 |
| 01/04/2022 | 15% | 3/23 |
| 9% | 9/109 | |
| 2016 | 9% | 9/109 |
| 2011 – 2015 | 15% | 3/23 |
| 2003 – 2010 | 12.5% | 1/9 |
| 1992 – 2002 | 10% | 1/11 |
Explanation:
- VAT Rates: The VAT rate is the percentage applied to the sale of goods and services.
- Tax Fraction: The tax fraction represents the portion of the VAT rate applied when calculating the tax component from a VAT-inclusive price. For example, if the VAT rate is 15%, the tax fraction is 3/23, which is used to determine the amount of VAT included in a gross amount.
This table provides a historical perspective on the changes in VAT rates and tax fractions in Fiji, reflecting the country’s evolving tax policy over time. For details, you can check here.