Archived Articles

The VAT Office recently conducted compulsory Spot Checks on all Retail Businesses in Port Vila and Santo. Despite announcing the Spot Check blitz well in advance through the Daily Post, many retailers were issued with spot fines for not complying with the VAT legislation.

All independent lawyers (that is, lawyers who are not employees) are obliged to register for VAT, if their annual turnover from supply of taxable services exceeds or is likely to exceed the VAT registration threshold of 4 million vatu.

The VAT Compliance Officers and Auditors from Port Vila will join force with the Officers stationed in Santo, Malekula and Tanna to enforce compliance and address outstanding VAT arrears and returns.

A registered person incurs VAT liability when it makes a supply for consideration. Considerations are usually money, but it can include non-monetary forms of payments such as in “barter” transactions and/or transactions where “in-kind” contributions are made.

VAT Office warns businesses that it is an offence for any person to aid, abet, incite, or conspire with any other person to commit any offence against the VAT Act No. 12 of 1998 or any Regulation made under the Act. 

Anyone who colludes with others to evade or avoid VAT obligations will face serious consequences including penalties and where appropriate will be prosecuted.

Upon conviction, the penalty for a first offence (or offences) against Section 51(1)(n) under the Act is a fine of up to 700,000 vatu or imprisonment of 3 months and/or both.

Compiled by B. J. Skane 

Aiming to strengthen the protection of Vanuatu’s borders and facilitate the clearance of genuine small craft and travelers into and out of the country the Department of Customs and Inland Revenue has issued a Notice to Masters that clearly sets out the procedures waterborne visitors must follow. 

The Post Customs Clearance Audit Section of the Customs and Inland Revenue Department is currently carrying out a survey on importers. The purpose of this survey is to assist the Department with the necessary background information to set up a better profiling system. Part of the outcome of this profiling system will have a strong positive impact on compliant companies such as:

• making clearance more easy
• less frequency of audit interruptions
• more time for business operations

Following the gazetting of the Import Duties (Consolidation) (Amendment) Act No. 29 of 2013, there is now a legal avenue for Super Yachts to operate in Vanuatu. This is an industry which Fiji and Tahiti have been enjoying for some years now, however the laws of Vanuatu have been prohibiting Super Yachts to operate in Vanuatu.

The World Customs Organization (WCO) aims to be the Global Center of Excellence for the development and delivery of effective, efficient and modern customs procedures.

August 1st 2013 marked the 15th anniversary of Vanuatu’s most significant tax reforms which is the introduction of VAT since 1st August 1998. The VAT concept originated in Germany, and represented a significant departure from previous forms of tax called sales/purchase tax. In 1954, France became the first country to introduce a form of VAT.

Customs as a border line agency plays a very important role when it comes to issues such as transnational border including crime syndicate in the business of drugs trafficking.

The Director of Customs and Inland Revenue (DCIR), Ben Leeshi, has led a five man delegation on a three day visit to Tanna from the 19th to the 21st of September 2013.