In 1986 New Zealand developed a simplified version with a single rate and with minimal exemptions.VAT is now the most widely used form of consumption tax in the world.
The Vanuatu VAT regime was adopted from the New Zealand Goods and Services Tax (GST) under the Government Comprehensive Reform Program (CRP). Vanuatu’s VAT journey started with mixed feelings amongst different groups of people in society but we are pleased to announce that today VAT is a key source of Government revenue in Vanuatu. Our first year (1999) collection was 2,361,995,476 vatu and for the year ending 2012 was 5,316,303,206 vatu.
For many people in Vanuatu, VAT has become part of their lives. VAT sometimes can be misleadingly described as a simple tax and on other hand can be claimed to be too complex. Vanuatu’s VAT journey had its ups and downs however from the real learning’s experienced by other countries, the sharing of skills, wisdom and knowledge made our journey much smoother and its adoption and implementation much easier.
It has always been our focus to improve the fairness and equity of our tax system that leads to a level playing field for all businesses in Vanuatu and for all potential investors.
During the 15 year journey, the VAT Office as the administrator of Vanuatu’s VAT regime, has grown from strength to strength. Here are some of our key achievements:
- Continuous focus on fairness and creating a level playing field for all taxpayers;
- Acceptance of the VAT regime in country by all stakeholders;
- Continuous improvements in our customer services to encourage voluntary compliance;
- Maintaining an effective enforcement practice;
- Investment in our technical capability and staff up skilling;
- Invested and upgraded work systems with modern technology;
- Successful re-organization and re-engineering of our tax administration systems and policies;
- Continuous improvements to our communication strategies to improve voluntary compliances;
- Significant increase in revenue collections.
The current performances and achievements suggest that Vanuatu’s VAT system in its present form is working, is the Government foremost revenue stream and will still be around for years to come.
The VAT Office celebrated the day with a cake cutting ceremony to reflect back on the achievements during the last 15 years and also outlined some of the challenges ahead
If you have any questions regarding the VAT regime in Vanuatu, please contact the VAT Office by phone: 00(678) 24573 or email us at
