Accordingly a new Return and Debt Collection Team and a Customer Service &Processing Team were introduced on 1st January 2015 that now operates under the Compliance and Revenue Section within the VAT Office.
The Return and Debt Collection team will solely focus on outstanding VAT returns and debts and will aim to prevent registered persons going into debts and also making people aware of their repayment options and supports rendered at Office. At the operational level the Return and Debt Collection Team will operate in segments meaning that there will be debt Officers looking after Very Larger & Large Segment, Medium Segment and Small & Micro Segment which is designed to allow the VAT Office to take appropriate actions against persistent non-compilers.
Registered persons are reminder that in all cases an additional tax of 10% of the outstanding tax is charged on the day following the due date for payment and an additional 2% of the total outstanding is then charged for each complete month that the tax remains outstanding.
We ensure a level playing field for all registered persons in Vanuatu. The VAT Office through this approach will detect those registered persons who are seeking an unfair advantage by not paying their VAT liabilities and warns these registered persons that if you file your return and/or make a payment after the due dates VAT penalties will be imposed and in most cases will not be waived.
With regards to the outstanding VAT returns from 1st January 2015 the Return and Debt collection Officers will take the following actions (for returns over due for more then 30 days):
A) Apply the prescribed penalties as required for Section 51(1)(b) of the VAT Act [CAP. 247] which is;
- 40,000vt for each month of the default for the first offence;
- 70,00vt for each month of the default for the second offence;
- Proceed with prosecution for subsequent offences.
B) Prosecution Process
- First Reminder letter;
- Second Reminder letter;
- Demand Letter;
- Prosecution as per Section 51(1)(3) of the VAT Act.
The Return and Debt Collection Team will assist businesses who are willing to work with the VAT Office and therefore encourages registered person who are currently in arrears with their VAT obligations to contact the VAT Office immediately.
We encourage registered persons to be discipline with their VAT lodgments and payments as penalties incurred in outstanding VAT are fruitless and wasteful expenditure for a registered person.
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
