FHTA VMS Update to Members No. 6 – VMS Deadline Extension Confirmed

FHTA VMS Update to Members No. 6 – VMS Deadline Extension Confirmed

This is the Fiji Hotel and Tourism Association’s (FHTA’s) 6th VMS Update to members since the confirmation of the Fiji Revenue & Customs Services (FRCS) announcement of the Vat Monitoring System (VMS) or Electronic Fiscal Device (EFD) Roll Out on 29 May 2019.

The due date for businesses included under Phase 3 the VMS/EFD Regulations to install, implement and operate an EFD has been extended from 31 July 2019 to 30 April 2020.

Groups of businesses included under Phase 3 of the VMS/EFD Regulations are as follows:

Groups of businesses
Description
Accommodation Includes hotels, boarding houses, lodging houses, guest houses and any building, vessel, premises, structure, caravan or house on wheels not being a public institution used for the business of receiving guests or travellers for any period of time or to which persons are entitled to resort for accommodation for hire or reward of any kind.
Architecture and engineering
Includes architectural and engineering activities and related technical consultancies. Commercial health care services Includes the provision of health care services on a commercial basis such as private hospitals, general or specialty medical and surgical hospitals, sanatoria, nursing homes, asylums, rehabilitation centres, medical practices, dental practices, allied health practices and optometry practices that are profit oriented businesses.
Construction Includes contractors and subcontractors in the construction or maintenance of buildings, construction of other civil engineering projects, demolition and site preparation, electrical installation, plumbing, heat and air-conditioning installation, other construction installation, building completion and finishing and other specialised construction activities.
Food services Includes the provision of food or drink whether alcoholic or otherwise in exchange for money or consideration such as restaurants, bars, nightclubs, taverns and catering services.
Freight operators
Includes freight transport by road, sea and coastal freight water transport, inland freight water transport, freight air transport, warehousing and storage, service activities incidental to land transportation, service activities incidental to water transportation, service activities incidental to air transportation, cargo handling, other transportation support activities, postal activities and courier activities, including customs agents.
Real estate agents
Includes all real estate agent activities in relation to owned or leased property and any real estate agent activity on a fee or contract basis.
Service stations
Specialised stores involved in the provision of the retail sale of automotive fuel and other goods, servicing of vehicles and other services provided at service stations.
Wholesalers and manufacturers
Includes dealers, traders, manufacturers, wholesalers and distributers of goods for sale that purchase great quantities of goods for resale. This also includes hardware companies, supermarkets and pharmacies that are wholesalers or manufacturers.
Do contact the Secretariat if you have any queries.

FHTA VMS Update to Members No. 5 – 31 July 2019

FHTA VMS Update to Members No. 5 – 31 July 2019

This is the Fiji Hotel and Tourism Association’s (FHTA’s) 5th VMS Update to members since the confirmation of the Fiji Revenue & Customs Services (FRCS) announcement of the Vat Monitoring System (VMS) or Electronic Fiscal Device (EFD) Roll Out on 29 May 2019.

FRCS understands that many of our Members will require more time to implement the VMS compliance practices into their systems and business process and that this implementation may exceed the due date of 31 July, 2019.

Members are therefore reminded that they must urgently do the following by TODAY for consideration of the deadline extension for them:

1. Go to the link: https://eservices.frca.org.fj/EFD
2. Register your Business

If you are having issues registering your business, if may be that you do not have an authorised person on record with FRCS. In this case, you will need to follow the additional steps below:

3. Businesses should provide their most feasible implementation plan as to when they will become EFD compliant, IN WRITING, by TODAY to FRCS. This can be sent via email to EFDCompliance@frcs.org.fj copied to deepika@frcs.org.fj. Or let the FHTA Secretariat know so that you are included in their list, or ensure their suppliers have provided this information already.

The extension of the 31st July 2019 deadline time will ONLY be considered if the above is carried out.

We therefore urge all members to consider the advice above and prepare their businesses accordingly.

We continue to work closely with FRCS to develop the Standard Interpretation Guidelines (SIGs) or tourism industry specific VAT regulations that would effectively and best address scenarios that capture tourism business processes. Additionally, we are working towards a consensus on where the fiscalisation points will be to assist members and software providers with confirming their solutions for compliance.

Do contact the Secretariat if you have any queries.

FHTA VMS Update to Members No. 4 – 19 July 2019

FHTA VMS Update to Members No. 4 – 19 July 2019

This is the Fiji Hotel and Tourism Association’s (FHTA’s) 4th VMS Update to members since the confirmation of the Fiji Revenue & Customs Services (FRCS) announcement of the Vat Monitoring System (VMS) or Electronic Fiscal Device (EFD) Roll Out on 29 May 2019.

FHTA has been in consultation with FRCS and the VMS Unit to discuss the VMS compliance requirements, provide background into our members’ business processes and discuss the way forward for meeting the required compliance by the 31st July 2019.

FRCS understands that many of our Members will require more time to implement the VMS compliance practices into their systems and business process and that this implementation may exceed the due date of 31 July, 2019.

Members are therefore reminded that they must urgently do the following for consideration of the deadline extension for them:

1. Go to the link: https://eservices.frca.org.fj/EFD

2. Register your Business

3. Businesses should provide their most feasible implementation plan as to when they will become EFD compliant, IN WRITING, by 31 July 2019 to FRCS. Or let the FHTA Secretariat know so that you are included in their list, or ensure their suppliers have provided this information already.

The extension of the 31st July 2019 deadline time will ONLY be considered if the above is carried out.

We therefore urge all members to consider the advice above and prepare their businesses accordingly.

We continue to work closely with FRCS to develop the Standard Interpretation Guidelines (SIGs) or tourism industry specific VAT regulations that would effectively and best address scenarios that capture tourism business processes. Additionally, we are working towards a consensus on where the fiscalisation points will be to assist members and software providers with confirming their solutions for compliance.

Do contact the Secretariat if you have any queries.

FHTA Update No. 3 for 2019 – Fiji Hyperbaric Chamber

FHTA Update No. 3 for 2019 – Fiji Hyperbaric Chamber

Monday, 15 July 2019 – FHTA has been following up on a monthly basis with the Ministry of Health on the commissioning of the new Hyperbaric Chamber that has now been installed. However, an electrical issue has further delayed the commissioning and we have been advised that this has now moved to August.

FHTA will provide further updates on when the chamber will be operational as soon as we have been formally advised.

Related:

Update No. 2 for 2019 (20th May): https://fhta.com.fj/fhta-update-no-2-for-2019-fiji-hyperbaric-chamber/

Update No. 1 of 2019 (26th February): https://fhta.com.fj/fiji-hyperbaric-chamber-update/

FHTA VMS Update to Members No. 3 – 12 July 2019

FHTA

This is the Fiji Hotel and Tourism Association’s (FHTA’s) 3rd VMS Update to members since the confirmation of the Fiji Revenue & Customs Services (FRCS) announcement of the Vat Monitoring System (VMS) or Electronic Fiscal Device (EFD) Roll Out on 29 May 2019.

FHTA continues to meet with FRCS and stakeholders to better understand the VMS compliance requirements, implication to our members’ business processes and how to address specific challenges, including the required compliance by the 31st July 2019.

If you have not read up on the VMS Update No. 2, that was shared on 28 June 2019, it can be viewed here.

FRCS has advised their understanding that some taxpayers may require more time to implement the VMS and that this implementation may exceed the due date of 31 July, 2019.

Where VMS/EFD compliance is expected to be delayed, FRCS will consider the business request if the following is carried out:

  1. The Business is registered for EFD. PLEASE DO THIS IMMEDIATELY IF NOT ALREADY DONE.
  2. The Business or solution provider has commenced work and made significant changes for accreditation of their software via the Tax Core administration portal (https://www.frcs.org.fj/our-services/vat-monitoring-system-vms/efd-accreditation-instructions/).
  3. Businesses must provide their most feasible implementation plan as to when they will become EFD compliant, IN WRITING by 31 July, 2019.

The extension of the 31st July 2019 deadline time will ONLY be considered if the above is carried out.

We therefore urge all members to consider the advice above and prepare their businesses accordingly.

We continue to work closely with FRCS to develop the Standard Interpretation Guidelines (SIGs) or tourism industry specific VAT regulations that would effectively and best address scenarios that capture tourism business processes. Additionally, we are working towards a consensus on where the fiscalisation points will be to assist members and software providers with confirming their solutions for compliance.

Do contact the Secretariat if you have any queries.

FHTA VMS Update to Members No. 2 – 28 June 2019

FHTA VMS Update to Members No. 2 – 28 June 2019

Members are advised that since the update by the Fiji Hotel and Tourism Association (FHTA) on the Vat Monitoring System (VMS) or Electronic Fiscal Device (EFD) Roll Out on 29 May 2019, the Association has been conducting on-going meetings with all the relevant stakeholders to better understand FRCS’ requirements, implication to our members’ business processes, their specific challenges and what will be needed to ensure compliance with this regulation within the 31st July compliance timeframe.

If you have not read up on the VMS requirements, information on the FRCS website that was shared earlier can be viewed here (https://www.frcs.org.fj/news/2019-2/vms-phase-3-rollout/).

We are working very closely with FRCS and on-going discussions with FRCS’s CEO and his VMS Unit, system software & hardware suppliers, members and their Financial Controllers as well as accounting firm reps have thus far provided the following information that we now share with you, to assist with understanding the compliance requirements and ensuring our members prepare to be compliant now:

1. Businesses that must comply.

2. Meeting the 31 st July Timeline

3. Understanding Tourism Business Processes

  • We have reached out to members to draw up a list of the many systems in use and discussed possible solutions with suppliers
  • We are working with FRCS to complete a list of the many “scenarios” that capture the various tourism related transactions that take place as part of normal business processes to determine at what points fiscalisation must be recognised
  • We are also working closely with FRCS to develop Standard Interpretation Guidelines (SIGs) or tourism industry specific VAT regulations that would effectively address these scenarios
  • If you do not think your business process would have been captured by us, please let us know your specific challenges

4. What Options Do Small Businesses Have?

  • We realize that many of our members are small operations that run on intermittent power supply and/or are off the grid for power and internet and that manual processes could be how things are being done currently. After all, being isolated and “unplugged” is probably what your visitors are seeking in the first place. We are working to find available options for this category of business but reiterate that you should also consider talking to an already accredited supplier noted in No.2.
  • We are also seeking clarifications on the support being offered by FRCS towards businesses with an annual turnover of less than $500,000 (referred to in their Tax Talk Article 28 June and the 2019-2020 Budget Supplement to the Budget Address, Part 2 Indirect Tax Measures, (i) Value Added Tax Act) where they discuss a free POS system.

5. Feedback

  • Members are reminded that they should provide the FHTA Secretariat with feedback on the specific challenges they are experiencing in trying to comply with this new VMS requirement or any other information they believe is relevant to the SIG’s we are compiling.