Archived Articles

The Value Added Tax Office continues to emphasis that it is continuously strengthening its compliance and enforcement across all areas of VAT tasks conducted by our staff as delegated through the Director’s powers under the VAT Act No. 12

The VAT Office warns registered persons to get it right, right from the start and include the insurance payments received as taxable income if the payouts (money) were to compensate for the loss

The Director of Customs & Inland Revenue Mr. Benjamin MALAS has finally met with the Secretary General of the World Customs Organisation in Brussels on the 1st of July 2015.

Starting from 1st July 2015, the Value Added Tax (VAT) Office is embarking on an eighteen month new Compliance Improvement Strategy as part of the VAT Office Modernization Programme.

The strategy was put together in early June this year with support from Pacific Financial Technical Assistance Center (PFTAC), based in Suva Fiji, the VAT technical advisor Mr. Praveen Reddy and local team.

Vanuatu has been a party to the Montreal Protocol on Substances that Deplete the Ozone Layer since 1994.

Since the enforcement of IPR laws in Vanuatu on 7th April 2015, Customs has been checking all suspected imports for infringement of IPR laws. On 2nd June 2015, a suspected import of counterfeit Singer Sewing machines from China was intercepted by Port Vila Customs for what it seems like an infringement of the Trademarks Act of Vanuatu.

The licensing framework that Customs employs provides for a quality control mechanism over the movement and storage of goods through the licensing of Customs Controlled areas and compliance with Customs declaration requirements for the importation and exportation of goods through the licensing of Customs Brokers.

The Department of Customs has observed and found some Tariff misclassification errors on certain types of motor vehicle tyres.

In Vanuatu the VAT law provides that an insurance company is entitled to claim back the VAT component of an indemnity payment made to one of their customers. An ‘indemnity payment’ is the payment made by an insurance company to a customer who has made a claim under their contract of insurance with the company.

Since the enforcement of IPR laws in Vanuatu on 7th April 2015, Customs have been checking all suspected imports for infringement of IPR laws. 

The VAT Office has taken an enforcement approach that does not tolerate repeated “mistakes”. This approach has been executed specifically to deal with VAT registered suppliers who has not taken their responsibilities seriously and have repeatedly sold goods that were not on the tropical cyclone Pam’s exemption list issued by Director through the VAT Office.

Two female tourist passengers from the Cruise Ship Pacific Dawn were intercepted and penalised by Port Vila Customs on 13^th May 2015 for distributing duty free cigarettes to locals at the Main Wharf. Their actions were a breach of the Customs Act and are subject to heavy penalties and even prosecution. Cruise ships are always reminding passengers and crews to make sure any duty free goods purchased in Port Vila are not to be consumed in Vanuatu.

The VAT Office have issued a number of spot fines to retailers for taking illegal advantage of the exemptions provided by the Government of the Republic of Vanuatu due to tropical cyclone Pam. In one particular case the VAT Office was disappointed to discover that a reasonable major retailer purchased large amount of timbers and nails from a supplier in Vanuatu for re-sale through his business without paying any VAT.

The Department of Customs and Inland Revenue (DCIR) is currently carrying out a joint friendly awareness program with the Police Force, Port Vila Municipality and the SHEFA Province on Liquor License operating hours.