As announced in the Fijian National Budget 2020/2021 by Government, there have been major changes to existing provisions of tax administration.
STT REMOVED
Effective 1 August 2020, all prescribed service providers will no longer be required to charge the 6% Service Turnover Tax (STT) on goods and services. This is applicable for charged products and services received from 1 August 2020 onwards.
ECAL REDUCED
Also from 1 August 2020, ONLY those prescribed service providers whose turnover is F$3million and above will be required to pay the Environment and Climate Adaptation Levy (ECAL) which has also now been reduced to 5% (from 10%). VAT of 9% is still applicable as normal. For a full list of prescribed service providers, CLICK HERE.
EXAMPLES OF STT & ECAL CHARGES
Scenario 1 (Before 1 August 2020)
| Service Charge (VEP) | $100.00 |
| ECAL (10%) | $10.00 |
| STT (6%) | $6.00 |
| VAT (9%) | $9.00 |
| TOTAL | $125.00 |
Scenario 2 (After 1 August 2020 – income under F$3million threshold)
| Service Charge (VEP) | $100.00 |
| VAT (9%) | $9.00 |
| TOTAL | $109.00 |
Scenario 3 (After 1 August 2020 – income over F$3million threshold)
| Service Charge (VEP) | $100.00 |
| ECAL (5%) | $5.00 |
| VAT (9%) | $9.00 |
| TOTAL | $114.00 |
DE-REGISTRATION FROM ECAL
We are aware that providers who are currently registered for ECAL, may now have fallen below the threshold for ECAL registration. The FHTA Secretariat is currently seeking confirmation of the proper procedure for de-registration from FRCS and will inform you as soon as we have the information. At this stage, the current requirement is to write to the FRCS CEO to request de-registration.
For more information on the Fijian National Budget announcements, CLICK HERE.
