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.

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.

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