Although the conference floor was really busy, I’ve managed to sit down with the head of Fiji Revenue and Service Mr Udit Singh. And, I was glad I did. The conversation carried the weight of experience and authority. Fiji has faced the challenge of modernizing VAT collection while keeping businesses engaged, a task that many Pacific nations are confronting right now. And yes, this discussion served another occasion as well. As we look forward to the upcoming PITAA Annual Heads Meeting 2025 in Tonga, Mr Singh will join a panel that I am given an opportunity to lead on Real-Time Transaction Monitoring. Thus, this interview acts as a prologue to the mentioned event.  

5 Key Takeaways

1. Real-Time Digital Monitoring Boosts Compliance: Fiji’s VAT Monitoring System (VMS) tracks every transaction, reducing underreporting and ensuring transparency at the point of sale, strengthening revenue collection without raising tax rates.
2. Stakeholder Engagement is Critical: Early and ongoing communication with businesses, training, and consultation build trust and foster voluntary compliance, turning a top-down rollout into a collaborative process.
3. Capacity Building Ensures Success: Practical guidance and hands-on support for both tax officials and business owners are essential; technology alone cannot achieve effective compliance.
4. Transparency and Fairness Drive Participation: By making VAT reporting visible and consistent, the system encourages voluntary compliance and positions businesses as partners in public service rather than subjects of regulation.
5. Political and Legal Support is Vital: Sustained government commitment ensures that technical challenges, misinformation, or stakeholder pushback do not derail implementation, providing a stable environment for cultural and systemic change in tax compliance.

Pacific VAT Compliance: Fiji’s Shift to Digital Monitoring 

For years, Fiji relied on businesses to self-report VAT. On paper, the system appeared straightforward. In reality, many transactions slipped through. Cash payments went unrecorded, and compliance depended on voluntary accuracy. The result was revenue loss and an incomplete view of the economy. This is exactly why the country went down the road of digital monitoring.  

“The biggest improvement has been a clear rise in VAT compliance,” Udit explained. “We also see more voluntary declarations and better alignment between sales data and tax returns. VAT monitoring system (VMS) reduced underreporting and gave us transparency at the point of sale, which strengthened revenue collection without increasing tax rates.” 

The system works because it tracks every transaction in real time. Each e-invoice becomes an official record. The government can monitor revenue as it happens, and businesses have clarity on what they owe. 

Building Trust During Implementation 

Rolling out the VMS powered by TaxCore in Fiji was far from straightforward. Many businesses initially resisted, uncertain about what the system would mean for them. Some worried it might expose errors or invite penalties, while others struggled with technical limitations. Misinformation also spread, with rumors suggesting the system was designed to monitor private business activity rather than improve compliance. 

To address these challenges, FRCS engaged directly with stakeholders. Officials visited offices, shops, and market stalls to explain the system in clear, practical terms. They organized training sessions, both in-person and online, giving staff and business owners the confidence to use the new technology. Consultation forums allowed businesses to raise questions and provide feedback, turning what could have been a top-down rollout into a collaborative process. A dedicated support team was also established, ready to troubleshoot issues and guide users whenever problems arose. 

Mr. Singh highlighted that building trust was as important as installing the system itself. “We wanted businesses to see the system as a partner, not a threat,” he said, emphasizing fairness and transparency over surveillance. By showing that the system aimed to create a level playing field rather than punish anyone, authorities encouraged voluntary compliance and cooperation. 

The focus on human engagement proved essential. Technology alone could not have succeeded without consistent communication, reassurance, and hands-on guidance. Through patient explanation, practical support, and open dialogue, the rollout gained acceptance, laying the foundation for a system that strengthened compliance, fostered trust, and gave both government and businesses clarity about their responsibilities. 

Pacific VAT Compliance: Experiences for Papua New Guinea 

Fiji’s experience provides worthy lessons for Papua New Guinea as it moves on a similar path. Mr. Singh emphasized three key takeaways. First, stakeholder engagement must begin early. Businesses are far more receptive when they are part of the conversation from the outset. Understanding the purpose of the system, its benefits, and how it affects daily operations reduces resistance and builds cooperation. 

Second, capacity building is necessary. Both tax officials and business owners need training to use the system effectively. Without practical guidance and hands-on support, even the most advanced technology can fail to deliver. Fiji’s rollout included workshops, training sessions, and ongoing support, ensuring users gained confidence and clarity in every step. 

Third, strong political and legal backing is vital. Projects of this scale inevitably encounter challenges, technical hiccups, misunderstandings, or temporary pushback from stakeholders. Governments must remain committed so that these obstacles do not derail progress. “When issues arise, politicians must know there is a plan and a goal,” Mr. Singh explained. “The tax authority clears obstacles and makes the process straightforward for everyone involved.” 

Taken together, these lessons show that successful implementation depends on more than technology. Early communication, practical training, and sustained political support create an environment where compliance is achievable, understandable, and accepted. For Papua New Guinea, these insights offer a roadmap to build a system that strengthens revenue collection while maintaining trust and collaboration between government and businesses. And far beyond, as the better VAT compliance in Pacific becomes easier to achieve. 

Digital Transparency and Fairness 

The VMS powered by TaxCore does more than simply record transactions. It creates a level of digital transparency that allows the government to see economic activity in real time. Mr Singh emphisized that the system can quickly identify taxpayers who were previously unregistered or reporting inaccurately. By bringing these activities into view, the system encourages voluntary compliance, making it clear that everyone is treated equally. 

“All taxpayers see that the system is fair,” he said. “Those who pay taxes know the authority is acting with integrity. Compliance improves because people understand the rules and see them applied evenly.” 

This transparency extends beyond numbers on a screen. It strengthens trust between the government, businesses, and citizens. When people perceive that the rules are applied consistently and fairly, they engage with the system willingly. Businesses are not merely monitored, they become active participants in public service. Compliance shifts from being a requirement imposed from above to a shared responsibility recognized by all. 

Through the combination of real-time data with visible fairness, VMS fosters a culture where paying taxes is understood as part of contributing to the community. It is a system that clarifies obligations, reduces uncertainty, and builds confidence in the institutions responsible for managing the country’s resources. 

Pacific VAT Compliance: A Cultural Shift Toward Compliance 

The impact of the VAT Monitoring System reaches far beyond numbers and data. Businesses now comply because the system makes evasion difficult, visible, and inconsistent with community expectations. Compliance emerges naturally when rules are applied fairly and consistently. 

“The effect is quiet but powerful,” Udit Singh said. “The system supports itself because people see it working, and they follow the rules willingly. It aligns responsibility with action.” He added that the visible fairness of the system changes how businesses approach their obligations. “When everyone knows the rules are applied evenly, it removes doubt. People feel that paying taxes is simply part of how business should be done.” 

Mr. Singh stressed that the system does more than enforce rules; it builds understanding. “Businesses start to see themselves as partners in public service rather than just subjects of regulation,” he said. “When compliance is visible, predictable, and fair, it encourages voluntary participation, which is far more sustainable than forcing adherence through penalties.” 

Eyes on Tonga and the Pacific 

The upcoming PITAA Annual Heads Meeting in Tonga presents an opportunity to share these lessons across the region. Pacific nations face similar challenges: dispersed populations, informal economies, and limited technical capacity. Fiji’s experience shows that clear communication, careful planning, and political support are crucial to success. 

Mr Singh’s insights provide a practical guide. Real-time transaction monitoring is no longer theoretical, but a proven method for making tax collection fairer and more reliable. Countries in the Pacific can use these lessons to implement systems that work for their people, their businesses, and their governments. 

“Thank you for trusting Data Tech International and working with us,” I told Mr Singh as our conversation ended. He smiled, acknowledging the effort yet confident about the path ahead. 

The post Pacific VAT Compliance: The Fiji Model   appeared first on Dti.

The meeting had two objectives: to explain the upcoming VMS enhancements and the EFD framework, as well as to address the developers’ questions in an open dialogue during the Q&A session.

Meeting details

During the first part of the meeting, Ms. Kelerayani Dawai, Compliance Director at FRCS, addressed the implementation of the new VAT requirements in the VMS system, outlining strategies to manage the ongoing changes while enhancing service delivery.

DTI’s Chief Technology Officer, Mr. Ivan Pavlovic, followed up with a detailed review of the most significant changes and key enhancements resulting from the transition from VMS version 2 to version 3. It is notable to mention that this transition is in alignment with Phase 3 of FRCS’s 2025/2026 National Budget Announcement.

Backward compatibility between v2 and v3 is assured

During this transition period, which FRCS confirmed will last until 31.12.2026, DTI ensures backward compatibility between the previous and the new system. All EFD solutions currently operating under the v2 model will continue to work with the new system until the extended transition deadline.

This measure confirms FRCS’s confidence that all vendors will adapt to the new version of the system within this timeframe and encourages them to begin adaptation and testing as soon as possible to ensure compliance within the extended timeline.

The developers who were both in the room and online openly voiced their questions to the FRCS and DTI representatives

The Q&A session

At the end of the meeting, an interactive Q&A session took place, during which vendors attending both online and in person could discuss changes, voice their concerns, and raise current issues regarding the transition from version 2 to version 3 of the VMS system.

3 key takeaways from the meeting

1. Supplier accreditation & conduct. Suppliers must apply for accreditation of POS/E-SDC (reg 8), comply with conduct rules (reg 15). Accreditation can be revoked where requirements aren’t met (reg 10).
2. Taxpayer obligations. Taxpayers must use compliant EFDs and issue fiscal invoices (regs 16–18). FRCS may audit and investigate (reg 27) and enforce compliance (reg 28).
3. FRCS (CEO) role & protocols. FRCS sets guidelines and protocols for communication/data exchange (regs 20–21) and publishes verification procedures (reg 25).

In conclusion

To ensure a level playing field and a stronger market of technically compliant solutions, DTI is providing equal technical support to every vendor and a free-of-charge accreditation process to verify compliance. We have designed this approach to enhance service quality, promote healthy competition, and provide taxpayers with a broader choice of compliant EFD offerings. Ultimately, it results in better outcomes for taxpayers.

Acknowledging the message the VMS developers conveyed to both FRCS and DTI, we reaffirm our commitment to supporting and strengthening effective communication among the three parties: DTI, FRCS, and third-party vendors.

DTI’s equal-support, zero-fee accreditation model is deliberate: it expands the pool of technically compliant solutions and raises the bar on service quality through competition. The result is better outcomes for taxpayers.

Final remarks

As a reminder, our journey in Fiji began in 2017, and since then, we have continuously supported and enhanced DTI’s flagship product, TaxCore®. DTI’s longstanding presence in the country, especially considering the rapid pace at which new technological solutions emerge, stands as a testament to the trust and strong partnership that exists between our company and Fiji’s FRCS.

Given the trust that FRCS has placed in our product, it is only natural for us to continue supporting and investing in this initiative. The recent upgrade to version 3 demonstrates that our product remains fully operational, future-ready, and continuously enhanced to address upcoming challenges. As always, we emphasize our strong commitment to fighting tax evasion.

The post DTI Meets with VMS POS and E-SDC Development Companies at FRCS’s Invitation appeared first on Dti.

Our participation in the CATA conferences has become a valued tradition within our organization, one that we are proud to continue. Having attended on several previous occasions, we remain committed to maintaining our presence and supporting the event.

The CATA conferences provide a valuable platform for staying informed about the latest developments in fiscalization. Bringing together leading experts in tax system modernization and digital transformation, the event offers a unique opportunity to exchange insights and explore emerging trends in the field.

Significant Milestone Achieved

However, what sets this year’s conference apart from previous editions is a significant milestone: for the first time, the Heads Meeting is being held as a separate program from the Technical Conference. This distinction is particularly important, as the clearly defined agendas allow participants to better navigate and focus on either technical matters or policy-related discussions. Leaders and delegate alike warmly received this change, as it promises to enhance the overall experience and foster more meaningful engagement from all attendees.

Keeping with tradition, the host country opened the conference with welcoming remarks delivered by the Commissioner General of the Internal Revenue Commission (IRC), Mr. Sam Koim. He warmly welcomed delegates and emphasized the significance of hosting the event in Papua New Guinea. This year’s conference had the theme: “Aligning Global Standards with Local Solutions: Evolving Tax Systems in the Digital Age.”

Key Takeaways from the CATA Conference

Strong collaboration and dialogue are essential: The conference provided a valuable opportunity to strengthen relationships among tax leaders from across the Commonwealth. It fostered meaningful dialogue on the future of tax administration in an increasingly dynamic and evolving global environment.

The focus is on innovation and digital transformation: A central theme throughout the conference was the role of innovation and emerging technologies in modernizing tax administration. Key discussions focused on the use of blockchain, real-time predictive data, and advanced analytics to enhance revenue collection, as well as the application of AI, automation, and personalized services to improve the overall taxpayer experience.

Regional collaboration is of paramount importance: Analyzing and drawing lessons from the fiscalization experiences of other countries in the region is essential for avoiding common pitfalls and ensuring a smooth, effective implementation. Throughout the discussions, participants emphasized the importance of peer learning and highlighted the need to develop tailored approaches that reflect each country’s specific context and needs.

How to best integrate global tax standards into national systems: Achieving alignment between global tax norms and local needs requires strong peer learning and regional collaboration. Participants also cautioned against an overreliance on international standards without proper adaptation, emphasizing the importance of contextualizing global frameworks to fit each country’s unique economic, legal, and administrative landscape.

Our Contribution to the Conference

Data Tech International proudly participated in CATA’s working group sessions under the theme “Harnessing Innovative Technologies for Revenue Growth: Bridging Strategy and Practice.” During these sessions, leaders from across the Commonwealth, such as Papua New Guinea, Fiji, Nigeria, or Malaysia, exchanged ideas, issued key recommendations, and defined follow-up actions. Among the most important topics discussed, the following stood out:

• Technology alone is not sufficient: Policy objectives must be aligned with the use and implementation of new technology. Technology goes hand in hand with improving taxpayer service and organizational reform (including a broader tax policy reform).
• Unitary invoicing is a powerful tool: To eliminate invoice fraud and improve VAT compliance, the buyer, the seller, and the tax authority must be simultaneously linked at the point of transaction.
• Local adaptation is the key to success: A successful implementation depends on local adaptation; systems need to be and remain relevant and accessible to both taxpayers and frontline staff equally.
• Flexible regulations over rigid ones: Experience proves that adaptive regulations, open to the idea of leaving room for local innovation and vendor participation, are more beneficial than prescribing specific devices or technical standards.
• International collaboration, strongly advised: Using learning platforms to exchange implementation experiences positively contributes to increasing regional leverage.
• Future topics to explore together: Leaders agreed that conducting maturity assessments, launching regional digital transformation clinics, improving collaboration with tech industry leaders, or enhancing digital tax policy frameworks are important milestones to achieve by the end of this year and the beginning of the next.

Final Word

We consider the 45th CATA Conference to be a great success, having brought together representatives from over 30 member countries. In addition to this strong participation, the event also welcomed delegates from key international and regional organizations, including the OECD, IBFD, IMF, World Bank, CIAT, PITAA, and WATAF.

This level of engagement reflects the deep commitment and collaboration among CATA’s leadership and partners. It also highlights the significant efforts made in the planning, organization, and coordination of the conference — efforts for which we are sincerely grateful.

From our perspective, this year’s CATA Conference could not have been more timely. The Pacific region is currently experiencing a significant wave of new fiscalization implementations, making the conference especially relevant. Notably, in Vanuatu and Papua New Guinea, DTI is preparing to deploy its TaxCore solution, aimed at making tax collection and compliance more streamlined, efficient, and technologically advanced than ever before.

DTI is proud to have contributed to the Commonwealth’s ongoing discussions by sharing its expertise in the field. We remain committed to strengthening our relationships with new and existing stakeholders while continuing to consolidate our presence in the region, a region that has always been, and continues to be, of strategic importance to us.

The post DTI invited to present at the 45th CATA Annual Heads Meeting appeared first on Dti.

In the South Pacific, where bureaucratic bottlenecks sometimes run on “Fiji time”, at the forefront of this shift is the Fiji Revenue and Customs Service (FRCS), a government agency long responsible for collecting the country’s revenue, now writing a new chapter in tax compliance with the help of Data Tech International (DTI). Together, we’ve built something the country has never seen before, a real-time VAT monitoring system that has already proven its existence.

This is the reason why we sat with Kelerayani Dawai, Director of Compliance at the Fiji Revenue and Customs Service (FRCS). FRCS is responsible for more than 85% of the government’s revenue. Now, think about that for a moment… most of the roads, hospitals, and public services in Fiji rely on one department’s ability to collect taxes accurately, promptly, and fairly.

Dawai doesn’t deal with sayings or lofty pronouncements. She talks directly about compliance, about trust, and the daily tug-of-war between what’s ideal and what’s achievable. “The truth is, we just couldn’t keep up,” she says. “The old way, checking receipts, doing manual audits, it wasn’t just inefficient. It was impossible for a country our size.” So, Fiji decided to stop chasing receipts and start receiving them, live.

Key Takeaways – Fiji eInvoicing Benchmark

1. Real-Time Data Changed Everything: Fiji didn’t wait for global consensus or donor blueprints, it went live. The VAT Monitoring System (VMS), powered by Data Tech International’s TaxCore, gave FRCS real-time access to every receipt. “We don’t have the resources to manually audit every trader,” said Director of Compliance Kelerayani Dawai. “We can’t be everywhere. But the data can be.”

2. Compliance Went from Enforced to Embraced: Initially met with suspicion, the system eventually won businesses over, not through pressure, but through proof. “We started seeing businesses that weren’t even obligated to join the system, step forward,” Dawai said. “They saw how it could help them too, not just us.”

3. Visibility Made the Difference: FRCS now sees every transaction down to the cent. This is live proof. From catching mispriced chickens to flagging misapplied VAT rates, Dawai put it simply: “We didn’t need guesswork. We had the receipts. Literally.”

4. Trust Was Built, Not Bought: Success came not just from software, but from how DTI worked with FRCS. “They learned our tempo,” said Dawai. “They adjusted. And that mattered.” Because when you’re asking a whole economy to shift its behavior, trust becomes your biggest asset.

5. The Region Is Watching: Fiji’s phased rollout and collaborative approach are turning heads across the Pacific. “We’re not telling them what to do,” Dawai said. “But we share our legislation. We share the phases. We share the stumbles and wins. Let them decide.” Because everyone wants to have keys to digital VAT monitoring and reporting success, this is why Fiji became the true eInvoicing benchmark.

The Partnership That Changed Everything

The shift began with a technological leap, but not one Fiji took alone. The real engine behind this change is the VAT Monitoring System (VMS), powered by a DTI’s platform called TaxCore. Since the early days of the FRCS/DTI partnership (2017), our team has become more like embedded collaborator than distant consultant.

This wasn’t a simple install-and-go. The road was long, occasionally bumpy, and often political. “We passed the legislation, and yes, there was pushback,” Dawai admits. Businesses didn’t like the idea of their sales data pinging over to FRCS in real time. There was suspicion, confusion, and a lot of bad information floating around. “There was resistance, of course,” she says, with the calm candor of someone who’s seen both the protests and the payoffs. “When the VAT Monitoring System was legislated, the business community didn’t understand why. They thought it was about control. But it was about fairness.”

Fairness, in this case, meant warranting every business, large or small, played by the same tax rules. Fiji, like many developing nations, leans heavily on VAT, which alone makes up nearly half the government’s income. That dependence made leakages intolerable. The solution? Not a legion of inspectors, but data, streamed directly from businesses to FRCS in real-time, via electronic fiscal devices connected to the TaxCore system.  “We don’t have the resources to manually audit every trader,” Dawai explains. “We can’t be everywhere. But the data can be.”

Still, no technology enters quietly. Businesses balked, citing confusion and cost. The pandemic didn’t help, pushing back key rollout phases. But over time, as understanding grew, so did the buy-in. Voluntary buy-in, in fact. “We started seeing businesses that weren’t even obligated to join the system, step forward,” Dawai says, smiling. “They saw how it could help them too, not just us.”

Fiji eInvoicing Benchmark: Seeing Everything, All at Once

The core idea of the VMS is simple: every transaction at a registered business sends a digitally signed and secured invoice to the tax authority. This gave FRCS something it never had before, visibility. Not statistical models or educated guesses, but live data. Down to the cents, across the whole economy. Obviously, VAT compliance improved dramatically. Audits became surgical instead of sweeping. And FRCS staff, once swamped by paperwork, could now spend their time analyzing data instead of chasing it.

But DTI didn’t just send technicians. They sent people willing to sit in meetings that lasted hours longer than scheduled and created chat platforms where junior FRCS staff could log queries directly. Focus was on relationship building. “They learned our tempo,” Dawai said. “They adjusted. And that mattered. Because when you’re asking a whole economy to shift its behavior, trust becomes your biggest asset.”

The Chicken That Shook the System

The government announced a shift from three VAT rates (15%, 9% and 0%) to a single flat rate of 15%. And just like that in 2022, prices for household staples jumped when the Budget was announced. The public wasn’t amused. Complaints poured into the Consumer Council and the Fiji Competition and Consumer Commission.

“People thought the VAT increase was the whole story,” Dawai says. “But our data told a more complicated one.” Within hours, FRCS, with DTI’s help, began generating inflationary reports using live VMS data. They zeroed in on prices for essentials, comparing them across retailers, regions, and time. One product stood out: chicken.

“Everyone eats chicken in Fiji,” Dawai says, smiling. Before the tax rate change, a standard chicken cost was around $17. The day after? Some outlets had it listed at $24. That’s not a 6% tax increase (from 9% to 15%), it’s a 40% spike. And the VMS caught it instantly. “We didn’t have to send inspectors and didn’t need guesswork. We had the receipts. Literally,” Dawai says. The system had teeth, not through threats, but through facts.

This digital accountability didn’t stop at chickens. When VAT rates were misapplied at checkout, sometimes by mistake, sometimes not, the system flagged it. When shops tried to play fast and loose with refunds or returns, TaxCore catches the anomalies. No need for dawn raids or paperwork marathons. Just data, flowing in real-time, scrutinized by analysts who focus on the signal, not the noise.

Fiji eInvoicing Benchmark: Why the Region is Paying Attention

Interestingly, word got out. Other countries, Papua New Guinea, Vanuatu and others, have started reaching out. Not for software, but for strategy.  “We’re not telling them what to do,” she insists. “But we share our legislation. We share the experience. We share the stumbles and wins. Let them decide.” Because this isn’t about showing off, it’s about building something that works. The FRCS isn’t trying to lecture the world. But if you’re looking for a small country that did something big with tax reform, this is where the real lessons live. This is how Fiji became the eInvoicing benchmark in the region, and maybe, even beyond!

It helps that FRCS took a staggered approach, three phases, each onboarding specific business sectors. Phase 3, the final one, is awaiting gazette approval. But Dawai’s vision goes beyond phases. She sees a future where every business in Fiji, formal or informal, issues digital invoices. A future where even the smallest roadside vendor knows exactly what they earned last month and how much tax they should (or shouldn’t) be paying. That shift, from suspicion to cooperation, might be the system’s biggest success. It’s not just about collecting revenue. It’s about changing relationships, and this is why other countries are following closely.

The Road Ahead

Phase 3 of the VMS is next. Dawai expects it to expand to more sectors, more businesses, and eventually, become the national norm. “This isn’t just about revenue,” she says. “It’s about giving small businesses tools they never had before. It’s about bringing the informal sector into the fold. And yes, it’s about making tax fair for everyone.”

When asked what advice she’d give to other revenue authorities, Dawai doesn’t hesitate. “Know your goal. For us, it was voluntary compliance. Not just more tax, but better tax. That’s what this system delivered.”

She doesn’t talk in slogans or strategies. She talks about what’s working. What’s changing. What’s possible when government stops chasing taxpayers and starts listening to the data.

The Example No One Saw Coming

What Fiji has done with the VMS, with TaxCore, with DTI, is nothing short of remarkable. In a region often written off as a footnote in global reform conversations, they’ve become a reference point. “It speaks volume in terms of how such a system can influence a tax system or reporting framework for a developing country like ours,” Dawai said. “Data is powerful nowadays. If you’re able to sit in the office and get information on a dashboard, all those reports… it changes everything.”

The old enforcement model, she said, was labor-intensive and often late. “We don’t have resources, we can’t police everybody, we can’t go and check individual records. It’s very expensive.” But the digital solution “was the option the government needed to take.”

The results are measurable, but perhaps more striking is the shift in tone. Compliance, Dawai said plainly, is no longer feared. “Right now, there is a great appreciation of the change that has taken place,” she said. “People appreciate that VMS is here to stay.”

And for Dawai, who has been tasked with upholding laws and closing revenue gaps, the bottom line is clear. When asked to sum up the biggest value of the VMS, she didn’t hesitate. “As a Director of Compliance, I really support this. And in that one word: it’s compliance!”

The post Fiji eInvoicing Benchmark: Compliance Made Easy appeared first on Dti.

As digitalization continues to drive change in economies worldwide, PITAA’s initiatives offer a clear path for Pacific tax administrations to stay relevant, innovative, and effective. By focusing on revenue mobilization, capacity development, and technological advancements, the organization provides a forward-looking approach to cooperation across the region. These key priorities are essential for equipping Pacific tax administrations to move with ease through today’s economic realities.

Once more, Data Tech International has had the honor to assist at this yearly event, this year held in Vanuatu. This yearly heads meeting is crucial for all the countries in the Pacific region willing to transform and enhance their economic systems. In this regard, DTI’s CEO, Mr. Goran Todorov, personally joined this yearly event and exchanged ideas and stories of success in the two countries in the region where DTI’s flagship product, TaxCore®, has a firm presence: Fiji and Samoa.  

TaxCore’s know-how offers countries in the region a clear path towards revenue increase by using the latest tendencies in digitalization, and data analytics with powerfully tailored reporting tools capable of handling compliance, modernizing tax systems, adapting to the local conditions, and, at the same time, by adding value to the tax administrations.

Fiscal Innovations: Modernizing Revenue Collection

As economies become increasingly interconnected, the need for innovative approaches to revenue collection has never been more critical. The growing complexity of tax compliance requires tax administrations not only to manage existing systems but also anticipate emerging risks and challenges.

PITAA’s emphasis on modernizing revenue collection highlights the importance of using data analytics, automation, and strategic risk management to address these challenges. By utilizing advanced technologies, tax authorities can more effectively identify tax evasion, predict areas of non-compliance, and develop tailored strategies to improve revenue generation. This is particularly vital for Pacific nations, where resources may be limited, and optimizing tax collection is essential to supporting public services and infrastructure development and maximizing tax collection is crucial for.

But modernization isn’t just about upgrading technology; it also involves taking care of transparency and accountability in an ethical manner. Effective risk management goes beyond identifying potential issues—it requires building trust with the public and engaging taxpayers to encourage voluntary compliance. As countries in the Pacific region like Fiji and Samoa, explore these fiscal frontiers, combining innovation with integrity will be key to achieving sustainable progress across the region.

Data Tech International fully understands these priorities. With a long history of supporting tax authorities across the Pacific, its success stories in Fiji and Samoa showcase how leveraging the latest technology can lead to tangible modernization in tax administration. By tracking non-compliance and utilizing advanced tools, these efforts are helping generate sustainable revenue streams, setting an example for the entire region.

Enhancing Digital Transformation: The Role of Technology in Taxation

Digital technology is playing an increasingly central role in transforming tax systems, and PITAA’s focus on digitalization—described as riding the “Digital Waves”—marks a significant shift in how countries manage taxation across the Pacific. From automation to artificial intelligence, these tools are leading to faster, more accurate, and more accessible tax systems that benefit both tax administrations and citizens.From automation to artificial intelligence, these tools are leading to faster, more accurate, and more accessible tax systems that benefit both tax administrations and citizens.

One of the most striking benefits of this digital transformation is the efficiency it brings. Automated processes reduce the administrative burden for both governments and taxpayers, automation now allows completing tasks in a manner of minutes when those tasks once took weeks. This frees up valuable resources for tax administrations to focus on more pressing matters, such as detecting fraud and ensuring compliance. Moreover, digital systems promote transparency by making data more accessible and traceable, reducing the opportunities for corruption or mismanagement.

The challenge: cybersecurity and the ethical use of AI

However, the rapid adoption of digital tools brings its own set of challenges, particularly in terms of cybersecurity and the ethical use of AI. As tax administrations become increasingly reliant on these technologies, it becomes crucial to protect digital tax systems from cyber threats. PITAA’s recognition of these risks highlights its dedication to building secure, resilient infrastructures that preserve the integrity of Pacific economies. Digital transformation must be paired with measures that address these risks and ensure that no country is left behind as the region advances.The digital transformation must go hand in hand with measures that address these risks and ensure that no country is left behind as the region moves forward. 

TaxCore®, with its broad range of capabilities, adds value to tax administration by offering a wide array of automation techniques that dramatically reduce the time tax authorities’ staff spend analyzing data. It also equips tax inspectors and other essential personnel with the data that truly matters when carrying out their daily tasks. Additionally, TaxCore® always protects sensitive data, keeping it safe from cyber threats, and having it remain securely on the tax authorities’ premises, well-guarded against any major incidents. Data Tech International (DTI) takes cybersecurity very seriously, addressing potential cyber-attacks that could threaten critical infrastructure.

Developing Expertise: strengthening the Pacific Workforce

A highly skilled workforce is the backbone of any successful tax system. Understanding this, PITAA has made capacity building a key pillar of its modernization efforts. As the complexity of taxation grows, a workforce equipped with the right skills and knowledge is essential to keeping pace with global trends and technological advancements.

To do so, tax authorities should not only focus on technical training but also foster a culture of innovation, leadership, and continuous improvement. This holistic model ensures that staff are well-prepared to not only operate modern technologies but also to engage in strategic thinking and problem-solving. As automation takes over routine tasks, the value of human expertise in decision-making, ethics, and long-term planning will only increase.

Collaboration and knowledge-sharing across the Pacific are equally important. While the region’s countries are diverse, they face many similar challenges in modernizing their tax systems. By sharing best practices and working together, tax administrators can enhance the effectiveness and efficiency of their systems. PITAA’s annual meetings provide a critical platform for this cooperation, enabling tax authorities to learn from one another and collectively strengthen tax administration across the Pacific.

Data Tech International (DTI) also contributes significantly to this vital aspect. Its proven expertise in capacity-building, demonstrated through successful implementations in Fiji and Samoa, showcases its strong commitment to adapting to local conditions. DTI focuses on maximizing the effectiveness of training for tax administration staff, modernizing existing processes, enabling new ones, and increasing overall efficiency in order to allocate limited resources effectively in a fast-changing environment.

Actions to Achieve the Vision

To turn PITAA’s vision of a modernized, efficient tax system into reality, several steps must be taken. The path to achieving these goals requires a balanced approach that integrates innovation, collaboration, and a long-term focus on sustainability.

First, investing in technology that truly delivers robust infrastructure remains a top priority. Without the right tools, even the most skilled workforce will be unable to fully implement modern tax systems. Building and maintaining digital platforms, secure databases, and automation tools is essential to laying the foundation for long-term success.

In parallel, maintain the current position that continuous learning and development are essential. While technology plays a key role in modern tax administration, the people who manage these systems are the true drivers of progress. Regular training, opportunities for professional growth, and engagement with new methodologies are crucial to ensuring that digital transformation efforts are both effective and sustainable.Regular training, opportunities for professional growth, and engagement with new methodologies are crucial for ensuring that digital transformation efforts are both effective and sustainable. 

Data Tech International cooperation commitment

In this respect, cooperation between Pacific nations is indispensable. While each country faces unique circumstances, the overarching themes of digitalization, risk management, and capacity development are shared challenges. By pooling resources, expertise, and insights, Pacific nations can create a collective force for regional progress and drive meaningful change in tax administration.

At Data Tech International, we believe that strong, ongoing cooperation is key to ensuring long-term regional progress. This is essential to achieving digital transformation. That’s why TaxCore® represents the most reliable solution for tax authorities—facilitating capacity development, securing revenue collection, and protecting sensitive data from cyber threats, while ensuring that the latest trends and technologies are continuously adopted, updated, and modernized.By pooling resources, expertise, and insights, Pacific nations can create a collective force for regional progress and drive meaningful change in tax administration.

The post PITAA Annual Heads Meeting 2024: TaxCore Response appeared first on Dti.

The conference, held in Fiji Islands, and attended by delegates from 14 PITAA member countries, regional and international partners, including Data Tech International (DTI).

The Fijian Ministry of Economy’s representative, Ms. Momina Beg, delivered the keynote address, who highlighted the benefits of FRCS technological investment in the taxation systems.

Panel discussions, featuring tax administration representatives, related to emerging issues of the post-covid era and hardships in getting on-site support from vendors and providers of digital services. This is indeed one of the major issues because most information system providers come from abroad and the Islands suffer through a difficult isolation period. During the discussion, in the 19th annual PITAA conference, the heads of tax administrations agreed that digital service providers should focus on knowledge transfer and empower their clients to be less dependent on overseas support.

Despite the unfavorable climate for business cooperation, DTI has managed to provide systematic support to FRCS (Fiji) and MCR (Samoa) through efficient remote communication. This constant dedication to the client’s needs has helped keep VMS and TIMS up and running throughout this prolonged period of isolation and uncertainty.

The post 19th PITAA Annual Conference appeared first on Dti.

Nevertheless, even in the best and richest countries of today, there are a lot of taxpayers who try to avoid paying taxes in every possible way. It was a shocking statement when a director of Swedish Tax Authority justified the introduction Swedish Cash Register Act 2010 to European Committee with findings that 75% of total turnover goes under-declared in small cash-based businesses. Certified Cash Register legislation was approved to protect serious business owners within cash trading from unfair competition and increase the legitimacy of the tax system by making it more difficult to withhold tax.

Although Sweden didn’t go across the board and monitored all registered taxpayers but mostly small cash-based businesses, the immediate effect corresponds to an increase in the reported revenues of 5 per cent, an additional half a billion AUD of new tax revenue. 

A Canadian province of Quebec, another developed and wealthy jurisdiction, Revenue Quebec had even more success with their implementation of technology to better serve its citizens. The hospitality sector alone progressively collected an additional 2.6 billion CAD. See The Resto Project video for more details.

Australia’s Tip-Off Program

Australia is by all means one of the most developed economies in the world, however, ATO’s tax collecting, and fiscal systems are not as modern as one would expect. Annually, tax evaders cause the country to lose a significant amount of money, prompting continuous efforts to engage customers in combating this issue. Although a good plan with an honest intention to protect businesses from unfair competition, there is a high chance it doesn’t bring enough results.

Australian consumers can report by sending a tip-off form or calling a number if any of following circumstances occur: 

• A customer receives a discount for cash, known as a “cash deal” or a “cashy,” without a receipt or through mates’ rates.
• A customer sees someone:
  • not ringing up a sale on their till or keeping the till drawer open 
  • having two sets of books
  • not declaring all of their income
  • deleting transactions on the point of sale system
  • failing to lodge returns or keep records
• Or
  • a business owners claiming personal expenses on a business account so they can claim deductions
  • a tax professionals encouraging you to claim incorrect or inflated deductions, or to hide or incorrectly change income that you should be reporting.

More about ATO’s making-a-tip-off

In 2020 alone, the Australian government has received over 60,000 tip-offs, and it reacted to most of them. Although using consumers to monitor taxpayers can help, it is often not the best, nor the fastest solution. The recent adoption of e-invoicing is not entirely addressing this issue as many can still go bellow the radar, without traceability, and continue to thrive in grey economy.

TaxCore® – Technology in Service of Customers and Tax Collection

Every receipt a business issues and prints is also visible to the Tax Authority thanks to this system. Moreover, customers can scan these receipts, as they come with a QR code. This code will show them a digital version of their receipts right on their smartphones. This comes with an option to report a receipt in case anything is wrong with it – whether it is incorrect TAX rate, added items, or inflated prices. This is probably the fastest way to catch uncompliant businesses by using customers’ help.

The program helped to educate customers on the importance of asking for and receiving a receipt. This was exceptionally helpful in countries where asking for a receipt isn’t part of the culture. The mindset quickly changed once customers were awarded for their efforts.

In conclusion

The post Australia’s Tax Tip-off plan appeared first on Dti.

This is why Fiji decided to implement the revolutionary solution against tax fraud that TaxCore represents. But, more than just a tax-collecting platform, TaxCore serves as a perfect ally against the grey economy, which was Fiji’s main objective to choose it in the first place. To truly fight the grey economy which costs many countries in billions, one must also organize the way fiscal atmosphere looks.

What Is the Overall Result in Fiji?

Two years later, and the overall situation in Fiji has significantly improved. One of the largest issues this nation was facing was the fact people didn’t ask for receipts. Naturally, this gives more than enough space for taxpayers to commit tax fraud at the cost of consumers’ rights. The culture in Fiji is such that asking for a receipt represents disbelief, and, as such, people frown upon this. The state of Fiji and Data Tech International had to come up with a way to motivate customers to ask for a receipt; and the best solution was to reward them.

TaxCore’s receipts are revolutionary for the way they look and present the information to a buyer. All the items are listed so clearly that a consumer is never confused, but more importantly, they come with a QR code at the bottom that a consumer can scan. By scanning this code, a customer can see a digital version of the invoice on their smartphone.

Moreover, they can report the receipt immediately if something doesn’t seem right. By doing this, they are taking part in the Customer Compliance Award program – which is a form of a lottery where a consumer can receive an award. The awards can span from a simple dinner for two, to a new car.

This plan motivated Fiji buyers to ask for receipts, which for the most part, helped shut down the grey economy.

Recently, Fiji announced that they’ve hit the mark of 200 million issued receipts. Although one might believe this number isn’t fascinating given how it has been two years – it is actually more than satisfactory for a couple of reasons.

The Rollout Process

Since implementing TaxCore presents a big change, the tax authority in Fiji must do this process in a precise and thorough manner. Therefore, Fiji’s Tax Authority decided to split taxpayers into groups – starting with realtors and pharmacies.

The first group consisted of these two industries only, and the new groups are expected to be rolled out soon. Issuing 200 million receipts is captivating because the number is based exclusively on supermarkets and pharmacies.

This is a clear sign that:

1. Consumers asked for receipts regularly, and
2. Taxpayers abide by the law

Hitting this mark is a clear signal that Fiji and TaxCore are successfully changing the fiscal and tax climate in the country.

Now that FRCS has collected more than 200 million fiscal invoices from onboarded supermarkets and pharmacies with over 100 different POS vendors and few ESDC vendors, it is time for new groups.

FRCS is now ready to take other industries into scope, especially hospitality, put on hold due to the COVID-19 crisis. Tourism and hospitality are two branches that have started to bring in a lot of revenue to the country, therefore Fiji deems it important to bring these industries into the system starting from January 2022, as delayed due to COVID-19.

The situation will only get better once all the industries have been properly enrolled in the system.

The post Fiji tax fraud – The State of Fiji Registers Its 200 Millionth Receipt – And Here’s Why That’s Important appeared first on Dti.

And although this is very much correct, revolutionizing, digitalizing, and modernizing systems that are based on bureaucracy does come with a small price. A price that some businesses are not willing to pay, mostly out of fear. This sounds reasonable – after all, we are used to complicated systems that are often dysfunctional. So even a bare mentioning of importing something new makes taxpayers and business owners resist in fear.

Nobody enjoys drowning in paperwork and documentation, much less going from bureau to bureau only to collect stamps and signatures that are basically irrelevant to the applicant. And that is exactly what TaxCore is all about – making sure that these practices as far as paper journals and archiving remain in the past, and letting technology take care of the rest.

Being Modern Requires Being Modernized First

Every single business has one aim, and that is catering to its target audience. The point is to always offer more and to make it easier for its customers – whoever and wherever they may be. And customers will constantly demand better because they expect the business they put their trust in to be in touch with the advancements of the world.

So naturally, once a certain country makes a decision to revolutionize its tax collection and fiscalization systems, the people involved expect that all the businesses and vendors follow up. Some may perceive it as challenge and some as advantage.

Once Samoa and Fiji decided to team up with Data Tech International and start using our platform, TaxCore, some changes were due. Businesses now must register all their sales points and vendors must go through the accreditation process for assurance that they are electronic sales suppression (ESS) free. Objective is to determine that they follow the fiscalization requirements imposed by the local Tax Authority. Therefore, businesses become qualified and compliant to work in this new environment.

Resistance is inevitable – a handful of businesses tried to find reasoning as to why they should go through accreditation and why it is necessary. This tends to put immense pressure on both the Local Government and Tax Authority.

It is important to mention that abiding by the law when it comes to taxes and fiscalization is not a choice, it is a civic duty, and business owners are no exception when it comes to it.

Is fining taxpayers the way forward?

In 1^st world countries, this almost never presents a problem. Taxpayers who own businesses are well aware of the consequences if they try to resist the fiscalization laws, governments will fine them and their business will suffer.

These fines and just how strict they are depends on the government – whether they are high and unforgiving or more of an educational tool to teach the taxpayers they must abide. Either way, it sets the rules clear; the Tax Authority and the Government define the law, and the citizens abide.

In developing economies, things sometimes take a different turn. In many cases, tax offices in the developing countries often behave as the middleman between the government and taxpayers. It comes off as if the tax offices in these countries are unaware of the authority they present, much less their duty to the country. But, is there a way to motivate businesses to go through accreditation? Fining taxpayers does the trick in some countries, but perhaps other countries can find a different method.

What Do Taxpayers Get from Accreditation?

The method of fining those who don’t abide by the law appears to be working in strong systems that don’t favor. Many developing economies are still in the process of creating such grounds, so perhaps making taxpayers realize how much they get by transferring to the new fiscalization system could help.

So, what is it exactly that business owners get with the new TaxCore system? Well, the benefits are plentiful:

• They will be protected from unfair competition
• The cost of compliance is minimized, as digital audit trail is on the government’s tab
• Eliminates the need for receipts and invoices in paper format, which saves a lot of money
• Management has better insight into business operations preventing classic employee theft
• Promotion of their business through the CCA (Customer Compliance Award) Program

These are only but a few of the many benefits business owners get the moment they make a transition, in many cases seamlessly, to the new system. They can easily cut all the unnecessary money outcomes and have better control of their staff and operations.

How about Vendors?

We would think most businesses would fulfill government requirements the moment specifications are published, as technical changes are not impossible to make. However, it’s the taxpayers who pay for their time, not the government.

In the ECR/POS/ERP industry there are so much diversity and the price ranges go from low to sky rocketing. Sometimes just a change request from a taxpayer would result in astronomical fees for engagement of developers and testers to rollout updates at all sales points. This has prevented some businesses to modernise as they couldn’t keep up with the expenses.

Fiscalization came as an opportunity for some to force updates. Some vendors did this for free because this request to accredit didn’t come from their customers but from the jurisdiction itself where their product is operating. And we expect this as the only way to retain customer, right?

Ethical behaviour vs maximising profits

Failing to comply and go through the accreditation, specifically in countries that operate with TaxCore, results in being unable to develop a business any further. As a business owner, this means losing customers and losing the market to those who complied in time.

Moreover, governments will fine these businesses, and these fines are high enough to present a problem for any business. And if that doesn’t prove to be enough, a business risks being shut down completely, with a jail sentence for the owner(s).

By embracing the new fiscal system, you allow your business to grow and you’re proving your customers their money’s worth. But what is your vendor is dragging feet or asking you for astronomical figure to cough up for upgrade? Firstly you should look at your support and maintenance contract, is there anything in there that obliges your vendor to comply with legislative (tax) requirements? If yes, then this is the case. If not, perhaps you should consider alternative solution and change the vendor.

The post Fiscalization – TaxCore Is Coming appeared first on Dti.

This is a step many countries have decided to make – Taiwan, South Korea, and now India. So, how exactly does invoice matching work?

Explaining Invoice Matching

Invoice matching is “the process of comparing information on the invoice with supporting documents such as a purchase order, goods receipt, and contract.” The point of invoice matching is to detect any potentially fraudulent or irregular invoices. Once the purchase requisition has been approved within the organization, the purchase order can be generated and then sent to the vendor.

Of course, an invoice deviation can happen sometimes. This is also called invoice exception, and it appears when the data on the invoice doesn’t match the supporting documents. A deviation usually leads to a traditional and thorough investigation which should determine if it was acceptable or if there was an error.

How Does TaxCore Do It?

Invoice matching seems to be an outdated, labor-intensive, cost-inefficient method due to the way it deals with possible deviations. Traditionally auditing any irregularities is a waste of time and workforce in most cases, especially given the advances in technology. But it’s not just any application of technology that works, as the IMF indicates, just bringing in more computers to make processes go faster is not the answer. A new tech-based invoice is needed, and TaxCore is a proven new tech-based invoice system

Countries that implemented TaxCore can testify that their B2B invoices not only match, but they are completely identical. When an audit is needed, buyer or seller only need to confirm that they are using the correct or identical invoice already stored in TaxCore itself. As opposed to traditional labor-intensive or computer-intensive invoice matching, our platform allows for an instant audit because it is based on real-time data collection.

In Samoa and Fiji, TaxCore has fully revolutionized the way B2B transactions work, as well as the regular B2C transactions. To find out more about TaxCore features, get in touch with us here.

The post Invoice Matching – Is It Really the Best B2B Fraud Solution? appeared first on Dti.