Return and Debt

Inland Revenue applies a functional model to administer the tax and licensing laws. A key section is the Return and Debt Collection Section. The section is organized into segments – these are:

·        Very Large and Large Segment

·        Medium Segment

·        Small and Micro Segment

The section is responsible for collecting overdue tax and licencing payments and returns.

It does this by firm and fair application of the range of collection powers that are provided for in the Tax Administration Act no.37 of 2018.

The section manages the collection of outstanding payments and returns.

The goal is to reduce debt and the number of outstanding returns.

If you anticipate that you will not be able to make a required payment or file by the due date you are encouraged to contact us prior to the due date.

In most cases payment plan arrangements can be agreed.

Yes. Be aware that there are significant penalties and interest that will be imposed on late payments and late filing. It is better that you talk to us if you are not able to pay or file by the due date.

VAT registered persons are reminded that the VAT they collect is to be held in trust – it should not be treated as a normal debt or liability.

The office is located in China Town beside the Chinese club building.

For more information please, contact us on:

·        Tel: +67833091

·        VoIP: 2317

·        Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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The Department of Customs and Inland Revenue would like to acknowledge the role of VAT Registered Persons and Entities in the collection, accounting and payment of VAT.

Our thanks to the vast majority of registered persons and entities that consistently comply with their obligations to file their VAT returns and make payment by the due dates.

Those Registered Persons and Entities who are failing on these obligations are reminded that the VAT you collect is held in trust for the Government. The VAT paid provides revenue for the Government to provide community services such as health, police and education.

We prefer you to comply. However, in accordance with the law, we will impose monetary penalties for failures to comply. Outstanding VAT debt will be collected using the wide collection powers that are authorized in the Tax Administration Act no. 37 of 2018.

Where there is outstanding debt or returns and no contact from the entity, the Director of Customs and Inland Revenue is committed to using the wide-ranging legal provisions and powers at his disposal to collect the debt. The powers include:

Providing security

To ensure payment is made, the Director can require a tax debtor to provide security over tax coming due or overdue. Security maybe a bond or bank guarantee or a mortgage over property held by the tax debtor.

Court Action

The Director can file a proof of debt to the Court to recover unpaid tax.

Payment by a 3^rd party

The Director can require a person that owes a tax debtor money, to pay the money to the Director. For example, where a tax debtor is owed money by their customer, the Director can require the customer to pay Inland Revenue.

Seizing bank account funds

Where a tax debtor has funds in a bank account, those funds can be seized by the Director and applied to the outstanding debt.

Recovery from administrators and liquidators etc.

The requirement for persons appointed to manage, liquidate or wind up the affairs of a person to pay unpaid tax.

Closing business premises

The Director can temporarily close a tax debtors business premises.

Seizure and forfeiture of goods

The Director can enter any premises and seize any goods that he believes are liable to VAT or Excise Tax but that tax will not be paid. The Director can then sell the goods and retain the proceeds.

Seizing personal property

The Director can recover unpaid tax by seizing (distraining) the personal property of a tax debtor. The Director can then sell the property and retain the proceeds to satisfy the debt.

Departure prohibition

The Director can stop a person leaving Vanuatu, if it is believed that the person will leave without paying tax owing.

Preservation of Assets

If the Director believes that a tax debtor is frustrating the collection of unpaid tax then the Director can freeze the tax debtors bank accounts or assets.