The new Compliance Strategy will see the VAT Office approaching outstanding VAT issues from an industry perspective apart from its traditional segment mode that the Office has operated under for the last 5 years. This is the initial phase of this approach and both the industry and segment model will be used collaboratively.
Industries selected for this initial phase are Retail and Wholesale, Tourism and Shipping industry. For retail and wholesale industry, only retailers and wholesalers operating non specialised stores are selected for this programme. Similarly hotels, restaurants and motor vehicle rental are selected for the tourism industry.
Industries were selected based on risk assessments carried out by the VAT Office using different risk matrixes. By having these matrixes, the VAT Office can better differentiate its responses to compliance risks – making it easier for those businesses trying to do the right things and harder for those who are avoiding their tax obligations.
What this strategy will do is:
- Engage with businesses who are trying to comply and through our industry partnership platform by making it easy for them to comply;
- Deal with high risk cases through our risk response matrix by enforcement modes to get businesses to comply and seeking third party support;
- Reduce outstanding debt and returns;
- Improve VAT services to businesses and extending outreach and awareness programs.
All three functions (Customer Service & Processing, Return & Debt Collection, & Audit) within the VAT Office will have a part to play in this strategy and what this means is that business within these sectors of the industries will get a chance to meet all our teams in the coming months.
Our Customer Service & Processing team together with our Return and Debt team will be promoting the VAT Industry Partnership Initiative to help businesses to come forward and comply. Through our industry partnership, the VAT team will present to businesses how the VAT Office could assist businesses and avenues available to make it easy for businesses to comply with their tax obligations. This is a very vibrant approach and businesses are encouraged to engage and have open discussions with our staff.
The Inland Revenues new approach to improve compliance requires the VAT Office to inform businesses in advance of what the VAT Office is initiating. This is a modern tax practice which demonstrates that Vanuatu’s VAT system is being managed in an open and accountable manner and with best practices that is acceptable to its external stakeholders and other interested parties.
The VAT Office would like encourage any persons in this situation to contact the VAT Office by phone: 00(678) 24573 and 00(678) 37517 (Santo), visit us at our Office in Carnot Street, Port Vila or email us at
