Once a business is registered for VAT, the Act places a number of tax obligations upon the Registered Person.
One of the tax obligations of the business is to notify the Director of Customs and Inland Revenue of any change of status of the business within 21 days of the change taking place.
It is required that the advice must be made in writing and it must state clearly what change is happening or has occurred in the business.
Example of changes whereby businesses must notify the Director of includes change in:
- Name of business (Trading name);
- Address;
- Principal business activity;
- Location of business;
- Member of a group of companies as per Section 45;
- Member in a partnership;
- Business entity.
It has been determined that the business address is the frequent change that is occurring and that most businesses has failed to inform the Director of that change. Business address includes:
- Conduct person of business;
- Telephone/mobile;
- Email;
- Postal address;
- Business premises.
It is important that a change in the business address is notified immediately so that business VAT records could be updated to provide for continuous exchange of information and relation between the business and the VAT Office.
Offence for not complying
The VAT Office would like to make known that any Registered Person who fails to notify the Director of any of the changes within the period as specified in Section 14 is committing an offence under Sub section 51(1)(b) of the Act and a penalty will be imposed for failure to meet this obligation.
Sub section 51(1)(b) states that:
PART 10 - OFFENCES AND PENALTIES
51. Offences
- Every person commits an offence against this Act who –
(b) refuses or fails to furnish any returns information as and when required by this Act, or any regulations made under this act or by the Director.
The prescribed fine for offences committed under sub section 51(1)(b) is VT40,000 for each month information is not provided on the first offence, VT70,000 for each month information is not provided on the second offence and the third offence will render case for prosecution.
In cases where a business has stopped trading, the Act makes it very clear under Sub section 13(5) that no obligation under this Act shall be affected by the fact that a Registered Person has ceased trading, ceased to be registered or that the registration is cancelled.
Therefore, it is very important that VAT Registered Persons takes it very seriously and must inform the VAT Office of any changes that has occurred in the business before the VAT Office picks it up where in the above penalties will be imposed.
If you are not sure as to what change in business you must inform that VAT Office of apart from the ones listed, it is in the best interest of your business to conduct the VAT Office on the address provided below to receive the correct advice.
For more information on any VAT issues, please 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
