Praneeta Prakash 
[Photo: File]
The Fiji Revenue and Customs Service is strengthening its VAT refund processes, with eligible low-risk claims generally targeted for processing within 30 days from the end of the filing month.
Finance Minister Esrom Immanuel says that the government recognizes the importance of timely VAT refunds, particularly in helping businesses manage cash flow and working capital.
The Minister says FRCS uses a risk-based approach to assess and process VAT refund claims.
He says legitimate and compliant low-risk claims are identified through automated risk-based parameters and expedited through streamlined verification.
However, high-risk or complex claims do not have a fixed processing timeframe.
“High-risk claims remain under pre-refund verification and audit before net payable sums are confirmed. A number of measures are being undertaken to improve the process. This includes strengthening the risk-based verification, improving the hedging analysis, as well as establishing a clear case ownership and escalation process, and better distinguishing straightforward low-risk claims from those requiring further review.”
Immanuel says outstanding VAT refund claims have historically ranged between $160 and $200 million dollars, while FRCS processes an average of $32 to $35 million dollars in total refunds each month.
The Minister clarified that the credit balance recorded in a taxpayer’s account does not necessarily represent the amount that will ultimately be paid.
