Global Daily Tax News, Fiji To Cut VAT Rate From August 1, (Jul 28, 2025)

As announced in the territory's June Budget, Fiji will reduce its value-added tax rate on August 1, 2025.

The Budget provided for a cut to the VAT rate to 12.5 percent, from 15 percent, starting next month.

Ahead of the change, the Fiji Revenue and Customs Service issued a statement for developers and vendors of electronic fiscal devices to ensure that their systems include a new VAT Tax Label "G" to reflect the new rate ahead of the change.

"This new tax label will come into effect on 1 August 2025, and must be incorporated into all POS and SDC systems accordingly," the agency said, adding: "All developers are required to update their systems to ensure compliance with this change. Please note that failure to implement the new tax label may result in penalties under the Tax Administration Act."