VAT Monitoring System assists two businesses to detect fraud

The implementation of the VAT Monitoring System has assisted two businesses detect fraud in their business.

This has been revealed by the Fiji Revenue and Customs Service Chief Executive Officer Visvanath Das who says they received feedback from two groups of taxpayers last week saying that implementing the system in their business enabled them to detect fraud since everything is fiscalised and goes through point of sales systems.

The fraud they detected was around $10,000 and $15,000.

Das says the compliance level for the implementation of the system has increased and VAT Monitoring System Phase 1 compliance rate has increased to 60% for supermarkets and pharmacies.

He says they see a better compliance rate of about 80% in Phase 2 for Accountants, Lawyers, Medical Practitioners and Hardware businesses.

Das says others are to voluntarily comply by 31st October, after which fines and penalties will be instituted.

He says under the VAT Monitoring System, Phase 1 and 2 industries need to issue proper fiscal invoices and customers can report business who do not do so.