SERVICE TURNOVER TAX For Charter Flights & Water Sports Service Providers - FIJI REVENUE & CUSTOMS
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SERVICE TURNOVER
TAX
For Charter Flights &
Water Sports Service
Providers
SERVICE TURNOVER TAX SERVICE PROVIDER
OBLIGATIONS
STT CALCULATION REGISTRATION
FIJI REVENUE & CUSTOMS
AUTHORITY
CONTENTS
Page
Part A - Service Turnover Tax 1
What is Service Turnover Tax (STT)? 1
Part B - Service Provider Obligations
Who should register for STT? 1
What is the registration threshold? 1
Deemed STT Registration 2
Who is responsible to collecting STT? 2
Accounting for STT 2
STT Penalties 2
Offences under the STT Act 2
Part C - STT Calculation
Guidelines for calculating STT 3
Part D - Registration
How and when to register? 4
Part A - Service Turnover Tax
What it is?
Service Turnover Tax (STT) is a tax that is levied on the VAT
exclusive cost of turnover of any person conducting a business
involving the provision of a prescribed service, at the rate of
5%, with effect from 1st January 2012. Turnover means any
sums or amounts received or receivable by or on behalf of the
owner of a service in respect of any sums or amounts included
in a charge for a prescribed service. The service provider has to
collect the STT shown on the bill issued to a customer.
Part B - Service Provider Obligations
Who should register for STT?
As from 1st January 2012, the owner or the person (Accountable
Person) who is responsible for the daily management of any of
the prescribed services highlighted below should register with
the Commissioner within 30 days before the commencement of
the business, provided their annual gross turnover exceeds the
registration threshold mentioned below:
• Water Sports;
• Underwater Activities;
• Skydiving;
• Hot Air Balloon rides;
• River Safaris;
• Aircraft Charter Flight or hire, including helicopters
provided they are registered with the Civil Aviation Authority of
Fiji.
The same shall apply to business operators currently involved in
the provision of the above highlighted prescribed services.
Only persons that provide the prescribed services are required
to register for STT purposes and are authorized to include STT
in their charges.
What is the registration threshold?
As from 1st January 2012, the providers of the prescribed
services highlighted above are required to be registered for
STT purposes, if their annual gross turnover is in excess of
FJ$300,000:
1
Deemed STT registration
This shall apply to any of the following:
• The person who is responsible for the daily management
of a prescribed service is deemed to be the “accountable”
person as from 01st January 2012.
• The precedent partner in the case of a partnership and the
manager in the case of a body of persons shall be deemed to
be the “accountable” person.
Who is responsible for collecting STT?
Any person who is responsible for the daily management
of a prescribed service highlighted above and who has
levied the STT on service charges must account for it. This
person is referred to, as the “accountable person” and any
correspondence or queries on STT will be sent to him.
Accounting for STT
The Accountable person must account for STT in monthly
returns. A STT return should be completed and submitted with
a cheque/cash for the STT applicable on the turnover for that
month within 30 days. The forms are available on our website
and Customer Service Centers.
The Accountable Person may issue bills that are STT inclusive
or STT/VAT inclusive or separately depending on the record
keeping system adopted. However, adequate records must be
kept for audit purposes.
STT Penalties
• any STT remaining unpaid after the due date for payment –
25% Late Payment Penalty applies.
• If lodgment is late, 20% Late Lodgment Penalty will apply
on the outstanding amount on the return.
Offences
Action will be taken to recover the unpaid STT and penalties
from third parties (such as banks) or through the courts.
The courts can impose a minimum fine of FJ$15,000 or to
imprisonment for a term not exceeding 12 months or to both a
fine and imprisonment on any of the following offences:
• failure to keep adequate records and accounts relating to the
turnover of the service provider.
• failure to allow authorized tax officials from entering the
2service provider’s premises to inspect turnover, collection or
payment records
• failure to produce any books or records relating to the
turnover and collection/payment of service turnover tax.
The Commissioner can also make an offer to compound an
offence.
Part C - STT Calculation
Guidelines for calculating STT
For illustration purposes, the two tables below show how the
gross amount paid by a water sports facility user should be
calculated if the service provider is registered for STT and VAT
purposes.
Table 1 [Manual Records]
Transaction Charges VAT
# STT 5% TOTAL
Type (VEP) 15%
1 Snorkeling $ 165.22 $ 8.26 $ 24.78 $ 198.26
2 Kayaking $ 17.40 $ 0.87 $ 2.60 $ 20.87
TOTAL $ 182.62 $ 9.13 $ 27.38 $ 219.13
Include in your monthly STT Return
Table 2 [System-Based Records]
Transaction Charges VAT Charges
# STT 5% TOTAL
Type (VIP) 1 5% (VEP)
1 Snorkeling $ 190.00 $ 24.78 $ 165.22 $ 8.26 $ 198.26
2 Kayaking $ 20.00 $ 2.60 $ 17.40 $ 0.87 $ 20.87
TOTAL $ 210.00 $ 27.38 $ 182.62 $ 9.13 $ 219.13
Include in your monthly STT Return
The table below shows how the gross amount paid by a water
sports facility user is calculated where the service provider is not
registered for VAT.
3Table 3
Transaction Charges
# STT 5% TOTAL
Type (VEP)
1 Snorkeling $ 165.22 $ 8.26 $ 173.48
2 Kayaking $ 17.40 $ 0.87 $ 18.27
TOTAL $ 182.62 $ 9.13 $ 191.75
Include in your monthly STT Return
NOTE:
• STT is always calculated on the VAT exclusive amount.
• VAT is calculated in the same way but the base figure shall
not include the STT amount.
Part D - Registration
How and when to register?
Owners of prescribed services are deemed to be registered for
STT, with effect from 1st January 2012.All will be required
to complete and submit the STT registration form to Inland
Revenue Services. In the application form the name of the
person who will be responsible for the collection and the
payment of the tax must be provided.
For new businesses, the Accountable Person should first obtain
a Tax Identification Number, then register for STT purposes.
Registration must be done within 30 days before the business
commences. The registration form is available on our website
and Customer Enquiry Centers.
An applicant must complete all the sections in one of the
following relevant forms and submit it together with the
documents required for TIN registration:
• Application of Registration of Sole Trader Businesses form
(IRS001).
You must submit one of the following plus your business
licence when registering:
o driver’s licence & Wheel Tax Certificate.
o FNPF card.
o passport.
o official ID card.
4• Application of Registration of Companies, Partnerships or
Trusts (IRS003).
You must submit the following:
o for a partnership (whether or not a written partnership
deed exists), a copy of its Partnership Deed/Agreement.
o for a trust (including a unit trust), a copy of its’ Deed of
Trust.
o for an estate of a deceased person, a copy of probate
statement from the executor.
o for a charitable organization or non-profit body, a copy
of its’ Certificate of Incorporation and Memo/Articles
of Association/Registration Certificate.
o for a company whether public or private a copy of its’
Certificate of Incorporation and Memo/Articles of
Association.
A business license needs to be submitted in addition to the
above requirements in the case only of a trading business.
A site inspection may be carried out by FRCA before a Tax
Identification Number (TIN) is issued.
The completed registration form can be either posted or hand
delivered to the FRCA office nearest to you.
REMEMBER THAT FAILURE TO REGISTER IS A CRIMINAL
OFFENCE AND RENDERS SEVERE PENALTIES
Disclaimer
The information in this document are subject to change without notice.
For more infformation, please contact the Taxpayer Education and Publicity Unit
on Phone: (679) 3243000 Fax: (679) 3302 321
e-mail: info@frca.org.fj or tepu@frca.org.fj
Images © Island Hoppers; Adrian Seah
5FIJI REVENUE & CUSTOMS
AUTHORITY
Head Office Taxation Division
(Inland Revenue Service)
Fiji Revenue & Customs Authority
Revenue & Customs Services Complex Suva
Cnr of Ratu Sukuna Rd & Queen Revenue & Customs Services Complex
Elizabeth Drive Private Mail Bag, Suva,
Private Mail Bag, Suva, Fiji Islands
Fiji Islands All Income Tax and VAT Enquiries
Phone: (679) 324 3000 Toll Free Line: 0800 331 7834
Fax: (679) 331 5537 Phone: (679) 331 2800
Email: tepu@frca.org.fj Fax: (679) 330 4936
Website: www.frca.org.fj or: (679) 330 2130
Customs Service Risk & Compliance
Suva Suva
Revenue & Customs Services Complex All Compliance, Debt Management &
Private Mail Bag, Suva, Lodgement Enquiries: Phone: (679)
Fiji Islands 324 3000
Phone: (679) 324 3000 Fax: (679) 330 2993
Toll Free Line: (679) 331 7070
Lautoka
Lautoka Tavewa Avenue
General Office: Tavewa Avenue, Lautoka Phone: (679)666 0966
Phone: (679) 666 0966 Fax: (679) 666 7734
Fax: (679) 666 5961
Labasa
Nadi Airport Phone: (679) 881 1399
Phone: (679) 672 2122 Fax: (679) 881 2354
Fax: (679) 672 5390
Levuka
Phone: (679) 344 0008
Fax: (679) 344 0425
Savusavu
Phone: (679) 885 0727
Fax: (679) 885 0728
Nausori
Air Services Office
Phone: (679) 347 8299
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