REPUBLIC OF FIJI ISLANDS
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INTERIM GOVERNMENT OF THE REPUBLIC OF THE FIJI ISLANDS
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VALUE ADDED TAX DECREE (BUDGET AMENDMENT) PROMULGATION 2008
(PROMULGATION NO. 31 OF 2008)

IN EXERCISE of the powers conferred upon the Interim Government, and upon the exercise of my own deliberate judgment as President of the Republic of the Fiji Islands as to what is best and good for the people of Fiji, and by the executive authority of the State in accordance with section 85 of the Constitution and such other powers appertain, and with the advice of Cabinet, I, Josefa Iloilovatu Uluivuda make this Promulgation to-

TO AMEND THE VALUE ADDED TAX DECREE 1991

Short title and commencement
1. This Act may be cited as the Value Added Tax Decree (Amendment) (No.) Promulgation 2008, and comes into force on 1 January 2009.

Section 2 amended
2. The Value Added Decree ("the Decree") is amended under Section 2 as follows –

(i) by deleting "on 25th day of July, 1990" and substituting it with " under the Constitution Amendment Act 1997" under the word "Constitution"; and

(ii) by inserting after the definition of "input tax" the following:

""Input tax schedule" means the Form 5 under the Third Schedule as prescribed or as approved Commissioner of Inland Revenue;".

New Section 31A inserted
3. The Decree is amended by inserting after Section 31 a new Section 31 A as follows-

“Section 31A Liability of Directors of Private Companies

(1) A director of a private company is answerable for anything done by that company under this Decree, and in case of default of the company, is liable to the same penalties and to account for the VAT debts of that company.

Provided that a director is not liable under this section for any tax liability of the company where Commissioner is satisfied that the director was not at the material time or times involved in the executive management of the company.".

Section 33(1) amended
4. The Decree is amended under Section 33(1) by inserting the words "with the accompanying Input tax schedule" after the word "return".

Section 39(6) amended
5. The Decree is amended under Section 39(6) by inserting a proviso as follows-

"Provided that no input claim shall be allowed under this subsection after the expiration of the period three years after the end of the taxable period.".

Second Schedule - Zero-rated supplies amended

(Section 2)

Paragraph 14 amended
6. The Decree is amended under the Second Schedule in paragraph 14 as follows-

(i) by numbering the first paragraph as “(1)”;

(ii) inserting a new sub paragraph (2) as follows- 

(2) For the purpose of this paragraph, supply of services will be zero-rated where and to the extend that these services are supplied for and to a person who is not resident in Fiji and who is outside Fiji at the time the services are performed for use and benefit outside Fiji and the supply is directly connected with goods or real property situated outside Fiji or with the rights that are for use outside Fiji.".

Third Schedule amended - Form 5 inserted
7. The Decree is amended under the Third Schedule by inserting after "Form 4" the following 
“Form 5”

“FORM 5

SCHEDULE OF INPUT TAX CREDITS CLAIMED IN THE VAT RETURN FOR 
TAXABLE PERIOD ENDING: ...........................................................................

Name: .......................................................................................................................

TIN:...........................................................................................................................

Date	Supplier	TIN	Tax
Invoice #	AMOUNT	VAT CLAIMED	

						

						

						

						

						

						

TOTAL VAT INPUT TAX CREDIT CLAIMED	$		

NOTE	PLEASE ENSURE ALL TAX INVOICES ARE RETAINED IN ACCORDANCE WITH SECTION 39(5) AND SECTION 79 OF THE VAT DECREE 1991. IN THE ABSENCE OF RECORDS, INPUT TAX CREDITS WILL BE DISALLOWED. AN ADJUSTMENT IS REQUIRED TO BE MADE FOR THE PERSONAL ELEMENT IN GOODS AND SERVICES ACQUIRED.

THIS SCHEDULE IS TO BE ATTACHED TO THE VAT RETURN	

Given under my hand this 30th day of December 2008.

J.I.ULUIVUDA
President of the Republic of Fiji Islands
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