In 2017, Fiji Revenue and Customs Services (FRCS) and Data Tech International (DTI) struck a deal that would completely change the fiscal and tax collection system in the country. The State of Fiji had to not only enact Vat Monitoring System (VMS) law but the overall fiscal culture and the way its people perceived fiscal receipts – or to be more specific, asking for one.
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, is frowned upon. 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
Thanks to this plan, the Fiji buyers were motivated to ask for receipts, which helped shut down the grey economy for the most part.
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, it is a process that must be done 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:
- Consumers asked for receipts regularly, and
- 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 which has been 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.