Running a small business in Fiji means managing customers, preparing invoices, tracking payments and understanding your tax obligations. Whether you operate a shop, provide professional services, run a trade business or work as a contractor, good invoicing practices can help you stay organised.
This guide explains Fiji's Value Added Tax (VAT), the current standard rate, tax invoices and practical steps small businesses can take to improve their billing process.
1. What is VAT in Fiji?
Value Added Tax (VAT) is a tax applied to many goods and services supplied in Fiji. It is administered by the Fiji Revenue and Customs Service (FRCS).
The standard VAT rate was reduced from 15% to 12.5% effective 1 August 2025. Some supplies are zero-rated, while others are exempt under the applicable rules.
Businesses should check the treatment of their particular goods or services rather than assume the standard rate applies to every transaction.
For official guidance, visit the FRCS VAT Guide.
2. What VAT rates should Fiji businesses know?
The main VAT treatments include:
- 12.5% standard VAT: Applies to standard-rated taxable supplies.
- 0% zero-rated VAT: Applies to qualifying supplies under the legislation, including certain exports and specified goods or services.
- VAT-exempt supplies: Certain supplies are exempt and are not the same as zero-rated supplies.
The distinction matters. A zero-rated supply is still treated as a taxable supply at 0%, while an exempt supply has a different tax treatment and may affect input tax credit eligibility.
Fiji also introduced a 5% Tourism Service Turnover Tax (TST) for qualifying tourism operators above the specified FJ$2 million turnover threshold from 1 September 2026. This is a separate tax measure and should not be confused with the general VAT rate.
Always check the current FRCS guidance for the specific transaction and business activity.
3. Does every small business need to register for VAT?
Not necessarily. VAT registration requirements depend on the applicable law, business activities and turnover.
Some eligible businesses may register voluntarily, while businesses that become liable to register must follow the applicable registration requirements. Once registered, a business has responsibilities that can include charging VAT on taxable supplies, issuing tax invoices, keeping records and filing VAT returns.
Do not charge VAT simply because you have created an invoice. Confirm your registration status and legal obligations with FRCS.
Official information is available from the Fiji Revenue and Customs Service.
4. What should a Fiji tax invoice include?
A VAT-registered business must issue appropriate tax invoices for its taxable supplies in accordance with Fiji's rules.
Depending on the transaction, invoice details can include:
- The words “Tax Invoice”
- Supplier's business name and Tax Identification Number (TIN)
- Customer's name and relevant details
- A unique invoice number
- Invoice or supply date
- Description of the goods or services
- Price before VAT
- VAT rate and VAT amount
- Total price including VAT
The exact requirements may vary according to the type and value of the transaction. FRCS also distinguishes a tax invoice from a proforma invoice. A proforma invoice is a preliminary document and is not a valid substitute for a tax invoice when claiming input tax credits.
Read the official FRCS tax invoice clarification.
5. How do you calculate VAT on an invoice?
For a taxable sale where the price is stated before VAT, the calculation is:
VAT amount = Price before VAT × VAT rate
For example, if a business provides a service for FJ$1,000 before VAT and the standard 12.5% rate applies:
- Price before VAT: FJ$1,000
- VAT at 12.5%: FJ$125
- Total including VAT: FJ$1,125
If a price already includes VAT, the VAT component must be extracted using the applicable tax fraction. At 12.5%, the fraction is 1/9.
For example, a VAT-inclusive total of FJ$1,125 contains FJ$125 VAT and FJ$1,000 before VAT.
These are illustrative calculations. Confirm that the standard rate applies to your actual supply.
6. Keep accurate business and tax records
Good record-keeping helps small businesses understand their income, monitor unpaid invoices and prepare for tax reporting.
Useful habits include:
- Give each invoice a unique reference number.
- Record the correct customer details.
- Describe goods and services clearly.
- Apply the appropriate tax treatment.
- Track payments and outstanding balances.
- Keep copies of invoices and supporting records.
- Review sales and expense records regularly.
FRCS guidance states that VAT-related records should generally be retained for at least seven years. Check the rules applicable to your business and keep your records accessible.
7. How invoicing software can help Fiji businesses
Preparing invoices manually can take valuable time away from serving customers and growing your business.
Invoicing software can help you:
- Prepare professional invoices and quotes.
- Store customer information.
- Email invoices to clients.
- Track paid and overdue invoices.
- Convert accepted quotes into invoices.
- Keep billing records organised.
MyBillDash is designed to make everyday invoicing simpler for small businesses. It helps users create quotes and invoices, manage client details, email invoices and track payment status.
You can try MyBillDash free for 30 days, with no credit card or payment details required and no obligation to continue.
Visit MyBillDash to explore the available features.
Before using the platform for tax-sensitive transactions, confirm that its configuration and invoice output meet your local requirements. Software does not replace professional tax advice or guarantee compliance with every Fiji tax rule.
Frequently asked questions
What is the standard VAT rate in Fiji?
The standard VAT rate is 12.5%, effective from 1 August 2025.
Are all goods and services charged 12.5% VAT?
No. Some qualifying supplies are zero-rated, and others are exempt. The applicable treatment depends on Fiji's tax rules.
What is a TIN in Fiji?
TIN stands for Tax Identification Number. It is used to identify taxpayers in their dealings with the tax authority.
Can a non-VAT-registered business charge VAT?
Businesses must follow the relevant registration and tax-collection rules. Do not charge VAT unless authorised to do so under the applicable law.
Why should small businesses use invoicing software?
Invoicing software can help businesses prepare consistent invoices, organise customer records and track payments. The business remains responsible for using the correct tax treatment and meeting its obligations.
Official references
Disclaimer: This article is for general information only, not tax or legal advice. Confirm current tax rates, registration obligations and invoice requirements with FRCS or a qualified tax professional.