Return of standard VAT rate to 15% for all supplies
Fiji’s 2023-24 budget, 30 June 2023, included a rise in the standard VAT rate from 9% to 15% from 1 August 2023. Previously, 9% was the main standard rate – although a range of supplies are already charged at 15%. The 9% rate has now been withdrawn.
Fiji had cut VAT to 9% on most supplies in 2016. It is one of the lowest in the region. New Zealand GST it 15% and Australia’s is 10%.
Zero-rated VAT will continue for the following supplies: zero VAT will include, flour, rice, sugar, canned fish, cooking oil, potato, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene, cooking and prescribed medicines.
Fiji digital services have been subject to VAT since 2020.
This change in VAT rates will generate additional VAT collection estimated at $446 million for government.
