The Fiji Revenue and Customs Service says the VAT Monitoring System or Electronic Fiscal Devices is to address the black economy and to ensure that the country is dealing with tax evasion.
CEO Visvanath Das says they have already found tax discrepancies amounting to more than half a million dollars in the medical sector after installing the electronic devices for point of sales.
With the new process in place in the medical sector, every customer should demand for a fiscal device receipt. As soon as the receipt is issued, Fiji Revenue and Customs Service gets the data of the sale. This will be compared with the annual returns filed with the data received from the devices.
Das says the third phase of the Electronic Fiscal Device project includes the accommodation and construction sectors which will have 17,000 businesses coming into the fiscalization process for Revenue and Customs Service.
He says in Fiji, much of the economy operates on a cash basis and the risk of a black economy is high.
Das says the sectors that operate with cash are high risk sectors.
He also says that the Electronic Fiscal Devices are not just VAT Monitoring Systems as it is meant to target point of sales.
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