NEWS

VAT overpayment/ recovery highlighted

The Fiji Immigration Department overpaid a total of $0.25 million in Value Added Tax (VAT) to the Fiji Revenue and Customs Authority (now known as the Fiji Revenue and Customs
25 Mar 2018 12:58
VAT overpayment/ recovery highlighted
The brand new Arrivals Immigration area at Nadi International Airport.

The Fiji Immigration Department overpaid a total of $0.25 million in Value Added Tax (VAT) to the Fiji Revenue and Customs Authority (now known as the Fiji Revenue and Customs Service) between January to July, 2016.

This was revealed on Thursday during the department’s submissions to the Standing Committee on Public Accounts on the Auditor General’s Report of 2016 on Thursday.

VAT is a tax on spending that is levied on the supply of goods and services in Fiji at the rate of 9 per cent, with effect from January 1, 2016.

The department’s audit review of monthly VAT returns revealed that the department calculated VAT at 15per cent resulting in an over payment of VAT to FRCS amounting to $254,919.69.

Senior Accounts Officer Kanuto Tugaga said the incorrect payment of VAT came about in the initial stages when the VAT was reduced from 15 per cent to 9 per cent.

“During the first three months we overlooked the calculations that were being paid out to FRCS and we overpaid them,” Mr Tugaga said.

“However, we have liaised with them and they will be refunding this money to us shortly.”

The report revealed the following figures:

  •   January 2016 paid in February 2016 – $45,126.94
  •  February 2016 paid in March 2016 – $47,007.79
  •  March 2016 paid in April 2016 – $52,686.51
  •  April 2016 paid in May 2016 – $49,742.49
  •  May 2016 paid in June 2016 – $31,065.01
  •  June 2016 paid in July 2016 – $29,290.95

Director Nemani Vuniwaqa thanked the Auditor-General’s Office for the findings and recommendations in the report.

While acknowledging the standing committee’s invitation, he said the department will continue to work with the relevant offices.

Edited by George Kulamaiwasa

Feedback:  fonua.talei@fijisun.com.fj

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