Fiji confirms Tourism Services Tax to apply only to new bookings from September 1

The Fijian government has confirmed a practical transition for the Tourism Services Tax, ensuring it will only affect new bookings made from September 1st. This decision, reached after discussions between the government and the tourism industry, aims to provide clarity and stability for both visitors and tourism operators.

Under the new arrangement, any bookings made prior to September 1st will not be subject to the tax, regardless of when the service is rendered. This measure allows tourism businesses to proceed with existing bookings and contractual obligations without unexpected financial changes. The Ministry of Finance, Ministry of Tourism and Civil Aviation, and the Tourism Action Group have all confirmed this practical approach.

The Tourism Services Tax itself is set to apply to eligible tourism operators and services under the Tourism Services Tax Act 2026. The tax period will run from September 1st, 2026, to August 31st, 2027. The Fiji Revenue and Customs Service is preparing to issue updated guidance and will collaborate with tourism stakeholders to facilitate a smooth implementation starting September 1st.

The government highlighted that this transition acknowledges the vital contribution of tourism to Fiji's economy, supporting employment, businesses, and local communities. The arrangement aims to support the industry while implementing the new tax.