Fiji Aims for 30-Day VAT Refunds for Low-Risk Claims

The Fiji Revenue and Customs Service (FRCS) is enhancing its value-added tax (VAT) refund procedures, aiming to process eligible low-risk claims within 30 days after the end of the filing month. Finance Minister Esrom Immanuel stated that the government understands the critical role timely VAT refunds play in assisting businesses with their cash flow and working capital management.

FRCS employs a risk-based approach to evaluate and process VAT refund applications. Legitimate, compliant, low-risk claims are identified through automated risk-based parameters and expedited through a streamlined verification process. This ensures that compliant businesses receive their refunds promptly.

However, the minister cautioned that high-risk or complex claims do not adhere to a fixed processing timeline. These claims undergo pre-refund verification and audits before any net payable sums are confirmed. Immanuel noted that several measures are being implemented to refine the process, including strengthening risk-based verification, improving hedging analysis, establishing clear case ownership and escalation procedures, and better distinguishing straightforward claims from those needing further review.

Historically, outstanding VAT refund claims have fluctuated between $160 million and $200 million dollars. FRCS processes an average of $32 million to $35 million dollars in total refunds monthly. Immanuel clarified that the credit balance shown in a taxpayer's account does not definitively represent the final amount to be paid, as it is subject to verification and potential adjustments.

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High-risk claims remain under pre-refund verification and audit before net payable sums are confirmed.