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 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.