Fiji implements tourist VAT refund system

Effective 01 February 2010 visitors to Fiji spending more than FJD500.00 in one day in selected tourism outlets in Suva and Nadi will be entitled to claim a 12 per cent refund from the country's customs authorities on departure.

Announced by Fiji's interim Prime Minister Voreqe Bainimarama, the new scheme, is seem as a boon for international visitors, particularly the thousands of cruise passengers visiting Suva this year*.

To date more than 42 registered outlets have joined in the scheme in both Nadi and Suva with many more expected to come online following the PM's announcement.

The system is very simple to use. To qualify a tourist must spend FJD500 or more on the same day at any one of the 42 designated outlets and take the goods out of Fiji within two months from date of purchase.

Visitors must present their purchases along with a VAT refund form, the original tax invoice, their passports and international boarding pass/cruise ship boarding pass at special desks being set up in both pre and post check-in areas in Nadi International Airport and on board all cruise ships entering Suva Harbour.

The new scheme will be administered by Fiji Islands Revenue & Customs Authority (FIRCA).

Tourism Fiji Regional Director New Zealand Sala Toganivalu described the decision as a timely windfall for the destination's tourism-related retail industry.

"There were some pockets within the international travel industry that had implied the destination was becoming over priced," he said.
"The introduction of the new VAT refund scheme in conjunction with the devaluation of the FJD last year provides travellers with a huge incentive to visit our islands in 2010."
*More than 50 cruise vessels are expected to enter Fijian waters in 2010, most of which have included Suva as a port of call.

Sourced= E-Travel