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Inland Revenue Spot Fines Retailers Thousands of Vatu

The VAT Officers strictly enforced the VAT Act in order to improve compliance and determine to level the playing field for all within the industry.

Majority of the fines issued were in relation to cash register machines – no till tapes in the register machine, no ink in the machine, wrong calendar year on the till tapes, prints on the register tapes were not readable and in some cases prints were in languages not accepted for VAT purposes in Vanuatu.

The VAT Office was disappointed that in some cases it was the second time that same offence has been committed. The VAT Office will take prosecution actions where applicable and have warned the retail industry that based on the outcome of the recent blitz the Office will have a continuous presence within the industry through its various initiatives including unannounced visits. The aim is to ensure that taxpayers are paying the right amount of tax at the right time by recording all transactions in a proper cash register machine and holds proper records as required by the VAT legislation. 

During this exercise the VAT Office forced registered few businesses who were well above the VAT registration threshold and also reminded retailers that by law they are required to display current Business Licenses (both from Government and Provinces) and the VAT Registration Certificate at a prominent place within the business premises. The VAT Office has advised taxpayers in writing who failed to display the VAT Certificates of the offence under Section 51(1) of the VAT Act. 

Section 51(1)

Every person commits an offence against this Act who-

Section 51(1)(qa)

Fails to display the certificate of registration in a prominent place on premises to which it relates; or

Section 51(1)(qb)

Fails to produce the certificate of registration for inspection by a person authorized under this Act; or

The VAT Office reminded taxpayers that a person who commits an offence under the above paragraphs is liable on conviction to a fine not exceeding VT500,000. 

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 email us.