Learn More About Tax Invoices And Their Significance

Receipts, invoices, tax invoices and credit notes are documents used to record business transactions between traders and customers. Only suppliers or traders registered for Value Added Tax (VAT) purposes are
05 Mar 2016 08:30
Learn More About Tax Invoices And Their Significance
Fiji Revenue And Customs Authority chief executive VISVANATH DAS

Receipts, invoices, tax invoices and credit notes are documents used to record business transactions between traders and customers.

Only suppliers or traders registered for Value Added Tax (VAT) purposes are required by law to issue Tax Invoices.

A Tax Invoice is a document that VAT registered persons issue to their customers when they make a sale.

For VAT registered recipients of a good or service, it is the main source document or evidence they must have to support a claim for input tax on business expenses.

This week we speak to Fiji Revenue and Customs Authority acting chief executive, Visvanath Das, more on tax invoices.

Sun INTERVIEWFiji revenue and customs authority ACTING chief executive VISVANATH DAS

When is tax invoice issued?
VAT registered persons are required to issue tax invoices when the supply of goods and services takes place or after the delivery of goods or services.

Is this information required on all tax invoices?
No. Tax invoices for supplies at the retail level or supplies up to $100 will show less information and the customer’s name is not required. These types of tax invoices show the following:

 the words “Tax Invoice”  marked clearly in a prominent or noticeable place;
 the name, address and Tax Identification Number (TIN) of the supplier;
 date the tax invoice was issued;
 a description of the goods and services supplied;
 The total price and a statement that the price is VIP
What if a registered person issues a receipt without the features of a tax invoice?
The recipient must inform the registered person to furnish him or her with a proper invoice that contain all of the features of a tax invoice as provided in the regulation. If the registered person knowingly issues such invoice, he or she would have thus committed an offence under the VAT Decree and may be liable for a penalty.

Can a registered VAT trader claim for input tax paid even though the supplier‘s document does not meet all of the tax invoice requirements?
No. The VAT registered trader cannot claim for the input tax paid and it is his or her responsibility to inform the Supplier to amend its Tax Invoice accordingly.

Can a registered person request for a copy of tax invoice in cases where they have lost it?
Yes, the registered person can request for a copy. In this case the supplier providing a copy will have to clearly mark the copy as “copy only”.

How does FRCA deal with unregistered person issuing a Tax Invoice?
Persons that are not registered for VAT should not to issue Tax Invoice. A Tax invoice signifies that the person is registered for VAT.  Once a report of such nature is received, inspection is carried out for the person who has issued the Tax Invoice.
If we find that VAT was charged and the trader knowingly engaged in practices that are offences for VAT purposes, legal action will be taken. Furthermore, that person will be registered for VAT and made to pay all the VAT that was collected from consumers.

How can customers identify whether a person they are dealing with is registered for VAT or not?
Persons that are registered for VAT are issued with a Certificate of Registration that has to be displayed in the business premises where the customers can see it clearly. Those that are not registered for VAT will not have this. Persons that are registered will display their prices as inclusive of VAT and persons that are not registered, will not do this.
A registered person will issue a Tax Invoice whereas the non-registered persons will issue an Invoice. The VAT Decree allows FRCA to release information about the VAT registration status of any person. Customers can call us or access the VAT Registered Persons list available on our website through the given link to identify and verify registered persons.

Where can members of the public lodge a complaint?
Complaints or general enquiries can be made at any of our Customer Enquiry Centres Fiji wide or you can contact our whistle blower programme for those who wish to remain anonymous. Whistle blower lines are 3243222, 3243666 and 6626777.

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