For example; a registered person has 18M vatu tax owing on 27th February 2014, on 28th February 2014, 10% additional tax is charged of 1.8M vatu and then added to the original tax outstanding so the total tax owing now is 19.8M vatu. On the 28th March 2014 if the tax has still not been paid so an additional 2% is charged and added to the 19.8M vatu.
The VAT Office provides numerous early remainders on a monthly basis to all registered persons that the VAT returns must be lodged and any payments due must be paid before the due date that is by the 27th of the following month. If the approved VAT due date falls on a weekend and/or public holiday then due date is shifted to the first working day.
The VAT Office has been very discipline and consistent with the reminders and expects all registered persons to do the same by filing their VAT returns before and/or on the approved due date. The VAT Office will continue to strictly enforce Section 31 of the VAT Act that allows the Director to charge additional taxes (penalties).
The VAT Act also provides a number of options for the Director to recover any tax owed by registered persons:
- Deduct tax from payments owed to the defaulter (Section 33);
- Seize and dispose of goods (Section 38);
- Take the defaulter to Court (Section 32(1));
- Offset any refunds owing to the defaulter against the unpaid tax (Section 41(3)).
The VAT Office encourages all VAT registered persons to file their VAT returns on time to avoid being penalized.
For more information on any VAT issues, please contact the VAT Office by phone: +678 24573 and +678 37517 (Santo), visit us at our Office in Carnot Street, Port Vila or email us at email us.
