Data Tech International (DTI) proudly commenced our strategic involvement with the Department of Customs and Inland Revenue (DCIR) on February 10th, 2025, marking a significant step for Vanuatu towards a modern, transparent, and effective tax compliance system. Through the adoption of our TaxCore® solution, DCIR is aligning itself with global best practices, ensuring every transaction is securely recorded and tax accurately captured in real-time or near real-time.

The Vision and the Path Forward

The Vanuatu Sales Monitoring System (VSMS), driven by TaxCore®, embodies a visionary leap forward towards tax compliance. It leverages secure, encrypted invoices transmitted automatically from accredited Electronic Fiscal Devices (EFDs) to DCIR. This infrastructure facilitates real-time synchronization, monitoring, and auditing, significantly boosting transparency and tax compliance.

Strategic Recommendations

Drawing on our global expertise, we’ve proposed targeted recommendations to secure the project’s success:

  • Legislative Preparations: Finalizing regulations and ensuring they harmonize with existing legal frameworks.
  • Data Quality Initiatives: Launching a taxpayer registry cleanup campaign.
  • Risk-based Implementation: Prioritizing implementation in high-revenue areas.
  • Compliance Task Force: Establishing a dedicated compliance and audit team within DCIR.
  • Public Awareness Campaign: Rolling out a comprehensive, multilingual communication strategy.
  • Support for POS Upgrades: Offering technical support for businesses to upgrade their point-of-sale infrastructure.
  • Enhanced Regional Support: Establishing regional enrollment centers.
  • Accessible Web and Mobile Solutions: Providing free invoicing solutions optimized for local infrastructure.
  • Customer Compliance Incentives: Introducing the Customer Compliance Award to encourage consumer participation.

Hon. Johhny Koanapo Rasou, Vanuatu’s Minister of Finance and Goran Todorov, DTI’s CEO

Infrastructure and Legislative Preparedness

The successful implementation depends heavily on digital infrastructure readiness and clear legislative support. With digital signatures and secure recordkeeping backed by TaxCore®, VSMS will meet stringent standards outlined in Vanuatu’s Electronic Transactions Act and Tax Administration Act, enhancing enforceability and compliance.

Taxpayer Compliance and Behavioral Change

Observations from previous monitoring exercises indicate taxpayers respond positively to active oversight. VSMS provides proactive, continuous verification, significantly improving detection and reduction of tax evasion and fraudulent activities.

Final Thoughts

Our project with DCIR involves capacity building and implementing VSMS, powered by TaxCore®. By fostering transparency, securing revenues, and enabling fair market competition, this system positions Vanuatu’s tax administration among the most progressive globally.

We at DTI are committed to this transformative journey, confident in VSMS’s ability to create lasting benefits for the government, businesses, and citizens of Vanuatu for years to come.