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SERVICE TURNOVER TAX ACT 2012 Revised up to 31st July 2020
THE SERVICE TURNOVER TAX ACT 2012 HAS BEEN REPEALED
WITH EFFECT FROM 1ST AUGUST 2020
DISCLAIMER
The Service Turnover Tax Act 2012 Revised to 31st October 2019 is produced for FRCS internal purpose only and is not intended
to be reproduced or transmitted in any form or by any means other than this purpose. The Fiji Revenue & Customs Service
expressly disclaims liability to any person in respect of anything done in reliance of the contents of this Act.
Table of Amendments
Service Turnover Tax Act 2012 (No 8 of 2012)1 commenced on 1 January 2012, as amended by:
Amending Legislation Date of Commencement
Service Turnover Tax (Amendment) Decree 2012 (No 43 of
2012)
1 January 2012
Service Turnover Tax (Budget Amendment) Decree 2012 (No
75 of 2012)
1 January 2013
Service Turnover Tax (Budget Amendment) Act 2014 (No 2 of 2014)
1 January 2015
Service Turnover Tax (Budget Amendment) Act 2015 (No 17 of 2015)
1 January 2016
Service Turnover Tax (Budget Amendment) Act 2016 (No 18 of 2016)
1 August 2016
Revised Edition of the Laws (Consequential Amendments) Act
2016 (No 31 of 2016)
1 December 2016
1 This was promulgated as Decree 8 of 2012. In accordance with section 3 of the Interpretation Act 1967, the word “Decree” used with reference to any such “Decree” in the title or provisions of any written law or in any document or legal proceeding may be replaced with the word “Act”.
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Service Turnover Tax (Budget Amendment) Act 2017 (No 25 of 2017)
1 August 2017
Fiji Revenue and Customs Authority (Budget Amendment) Act 2017 (No 38 of 2017)
1 August 2017
Service Turnover Tax (Budget Amendment) Act 2018 (No 16 of 2018)
1 August 2018
Service Turnover Tax (Repeal) Act 2020 (No 17 of 2020) 1 August 2020
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TABLE OF CONTENTS
PART 1 PRELIMINARY
[Section 1] Short title and commencement
[Section 2] Interpretation
PART 2 SERVICE TURNOVER TAX
[Section 3] Levy and payment of Service Turnover Tax
[Section 4] Service Turnover Tax to be paid and returns made to the CEO
[Section 5] Accountable persons to register with the CEO
PART 2A ANTI-AVOIDANCE
[Section 5A] Avoidance of Service Turnover Tax
PART 3 MISCELLANEOUS
[Section 6] Application of the Income Tax Act 2015
[Section 7] Regulations
[Section 8] Repeal and transitional
[Schedules]
SCHEDULE - Prescribed Services
REPEAL PROVISIONS
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PART 1 PRELIMINARY
(Sections 1-2)
[Section 1] Short title and Commencement
(1) This Act may be cited as the Service Turnover Tax Act 2012.
(2) This Act shall be deemed to have come into force on 1 January 2012. [subs (2) am Decree 43 of 2012 s 3, effective 1 January 2012]
[Section 2] Interpretation
In this Act, unless the context otherwise requires—
accountable person
means the owner, manager, sole precedent partner and
otherwise the person who is responsible for the daily
management of the prescribed service and is responsible for the
collection of tax under section 3;
CEO
means the Chief Executive Officer appointed under the Fiji
Revenue and Customs Service Act 1998 and tax laws, or any
persons appointed by the Chief Executive Officer for the purposes
of this Act;
[def am Act 25 of 2017 ss 2 and 5, effective 1 August 2017; Act 38 of 2017 s 7, effective 1 August 2017]
person means an individual, company, partnership or trust;
precedent partner
in relation to a partnership, means the partner who, of the
partners resident in Fiji—
a) is first named in the agreement of partnership;
b) if there is no agreement, is named singly or with
precedence over the partners in the usual name of the
partnership; or
c) is the precedent active partner if the partner named with
precedence is not an active partner,
and includes, where no partner is resident in Fiji, the attorney,
agent, manager or factor of the partnership resident in Fiji;
prescribed service
means a service listed in the Schedule where the annual gross
turnover for the provision of such service exceeds $1.25 million;
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[def subst Act 16 of 2018 s 2, effective 1 August 2018]
Service Turnover Tax means the tax imposed under section 3; and
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.
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PART 2 SERVICE TURNOVER TAX
(Sections 3–5)
[Section 3] Levy and payment of Service Turnover Tax
(1) Subject to the provisions of this Act, a tax at the rate of 6% shall be levied on the turnover
of any person conducting a business involving the provision of a prescribed service. [subs (1) am Act 17 of 2015 s 2, effective 1 January 2016; Act 25 of 2017 s 3, effective 1 August 2017]
(2) The tax levied under subsection (1) is payable by the person to whom the prescribed service
is provided.
(3) Notwithstanding subsection (2), the Service Turnover Tax shall be payable and recoverable
from the accountable person in accordance with section 4.
(4) The tax levied under subsection (1) shall—
a) not be subject to the Value Added Tax imposed under the Value Added Tax Act 1991; and
b) be clearly and separately shown on a tax invoice, invoice or receipt issued for the payment
of any prescribed service. [subs (4) am Act 17 of 2015 s 2, effective 1 January 2016; Act 25 of 2017 s 3, effective 1 August 2017]
[Section 4] Service Turnover Tax to be paid and returns made to the CEO
(1) The accountable person shall—
a) before or on the last day of each month following the month in which the tax was
collected, pay the CEO any Service Turnover Tax that has been payable since the previous
month; and
b) provide together with such payment a return setting out the total amount of the turnover
for that month. [subs (1) am Act 25 of 2017 s 5, effective 1 August 2017]
(2) Notwithstanding subsection (1), the CEO may, in any particular case, require that the Service
Turnover Tax be paid within a period of less than one month. [subs (2) am Act 25 of 2017 s 5, effective 1 August 2017]
(3) Pursuant to subsection (2), the accountable person shall—
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i. pay the CEO the prescribed Service Turnover Tax within 14 days after the expiry of
the period fixed by the CEO; and
ii. comply with the requirement of subsection (1)(a) in respect of that period. [subs (3) am Act 25 of 2017 s 5, effective 1 August 2017]
(4) For the purpose of ensuring that a person does not pay Service Turnover Tax more than
once in relation to a prescribed service, an accountable person shall —
a) only charge and pay the CEO the Service Turnover Tax that is payable for the prescribed
service provided by the business under the responsibility of the accountable person; and
b) not charge Service Turnover Tax for a prescribed service where Service Turnover Tax has
been charged by another person with respect to the prescribed service. [subs (4) insrt Act 25 of 2017 s 4, effective 1 August 2017; am Act 25 of 2017 s 5, effective 1 August 2017]
[s 4 am Act 25 of 2017 s 5, effective 1 August 2017]
[Section 5] Accountable Persons to Register with the CEO
(1) Subject to subsection (2), the owner or the person who is responsible for the daily
management of a prescribed service shall, within 30 days before the commencement of the
business, register with the CEO the—
a) name and address of the accountable person for the prescribed service;
b) names and addresses of any partners and associates in that business, indicating the
precedent partner;
c) names and addresses of the directors and authorised officers of the company, in the case
of a company;
d) trade or business name where the business is carried on under a name or style other than
under his or her own name; and
e) place and address where the person intends to carry out the prescribed service. [subs (1) am Act 25 of 2017 s 5, effective 1 August 2017]
(2) At the commencement of this Act, the person who is responsible for the daily management
of a prescribed service is deemed to be registered under this section as an accountable person.
(3) Notwithstanding subsection (1), a person who is registered under the Hotel Turnover Tax
Act 2006 shall be deemed to have been registered under this Act.
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(4) It shall be deemed to be sufficient compliance with subsection (1) if, in the case of a
partnership, the precedent partner, and in the case of a body of persons, the manager, effect the
registration of that partnership or body of persons.
(4A) In the case of paragraph 14 of the Schedule, any person receiving rent on behalf of the
owner shall be registered or deemed registered as an accountable person. [subs (4A) insrt Decree 75 of 2012 s 2, effective 1 January 2013]
(5) Any person who, on or after 1 January 2012, in the course of carrying out the prescribed
service has reasonable grounds to believe that his or her annual gross turnover will exceed $1.25
million, that person shall register or be deemed registered by the CEO. [subs (5) insrt Decree 43 of 2012 s 4, effective 1 January 2012; am Act 25 of 2017 s 5, effective 1 August 2017; Act 16 of 2018 s 3,
effective 1 August 2018]
(6) Subject to this Act, any accountable person registered under subsection (5) that has been
registered for 12 consecutive months may notify the CEO if the annual gross turnover of the
prescribed service during the period of 12 months is not more than $1.25 million and if the CEO
is satisfied that the annual gross turnover of the prescribed service during the period of 12
months is not more than $1.25 million the CEO shall deregister the accountable person.
[subs (6) subst Act 16 of 2018 s 3, effective 1 August 2018]
[s 5 am Act 25 of 2017 s 5, effective 1 August 2017]
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PART 2A ANTI-AVOIDANCE
(Section 5A)
[Section 5A] Avoidance of Service Turnover Tax
If there are reasonable grounds for the Chief Executive Officer to believe that any dealings have
the direct or indirect effect of—
a) altering the incidence of any Service Turnover Tax that is payable or suffered by, or
which would otherwise have been payable or suffered by any person;
b) relieving any person from any liability that has arisen or which would otherwise have
arisen to pay Service Turnover Tax or file a Service Turnover Tax return;
c) evading or avoiding any liability which is imposed or would otherwise have been
imposed on any person under this Act; or
d) hindering or preventing the operation of this Act in any respect,
the Chief Executive Officer may, without prejudice to such validity as it may have in any other
respect or for any other purpose, disregard or vary the dealings and make such assessments as
the Chief Executive Officer considers just and proper in the circumstances.
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PART 3 MISCELLANEOUS
(Sections 6–8)
[Section 6] Application of the Income Tax Act 2015
Section 102 of the Income Tax Act 2015 applies for the purpose of this Act. [s 6 am Act 31 of 2016 s 194, effective 1 December 2016]
[Section 7] Regulations
The Minister may make regulations to give effect to the provisions of this Act.
[Section 8] Repeal and transitional
(1) The Hotel Turnover Tax Act 2006 is hereby repealed.
(2) Any Hotel Turnover Tax imposed under the Hotel Turnover Tax Act 2006 continues to apply
to hotel guests to whom the charges included in a guest's bill are subject to the tax that were
incurred or part of the bill of the hotel guests prior to the commencement of this Act.
(3) Subject to subsection (2), any new prescribed services provided in the list in the Schedule
whereby charges or invoice raised prior to the commencement of this Act and services will be
provided after the commencement of this Act, shall not be subject to tax.
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SCHEDULE
(Section 2) - Prescribed Services [Sch am Decree 43 of 2012 s 5, effective 1 January 2012; Act 2 of 2014 s 2, effective 1 January 2015; Act 17 of 2015 s 4, effective
1 January 2016; Act 18 of 2016 s 2, effective 1 August 2016; Act 25 of 2017 s 5, effective 1 August 2017; Act 16 of 2018 s 4,
effective 1 August 2018]
1. Provision of accommodation, refreshments and any other services by a licensed hotel.
2. Any services provided in a vessel that is wholly or principally engaged in the carriage of
tourists within Fiji.
3. Provision of meals or beverages, and any other services in a licensed bar.
For the purpose of this paragraph, “bar” includes any club.
4. Provision of services such as music, dancing or other entertainment including other services
in a licensed nightclub.
5. Provision of inbound tour services.
6. Live entertainment provided wholly or substantially by the personal participation of artists
at the place of performance or exhibition of products, where a fee is charged.
7. Provision of services for recreational activity for gain.
8. Provision of services relating to any exhibition of films to the public or to a section of the
public which includes the production of any music, speech or other sound whatsoever in
connection with the projection of a film, where the exhibitor is licensed under the
Cinematographic Films Act 1971 and a charge is made for admission to the premises which
the exhibition is held, including any other services provided by cinema operators.
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9. Provision of services relating to hire or rent of motor vehicle by a person that operates a
business of hired cars or rental cars licensed by the Land Transport Act 1998, and the
provision of chartered transport services to tourists by an omnibus or a mini -bus operator.
10. Provision of meals, beverages and other services by bistros or coffee shops.
11. Provision of meals, beverages and other services regularly supplied on sale to the public by
a licensed restaurant.
12. Provision of charter flight services provided by an aircraft or helicopter registered with the
Civil Aviation Authority of Fiji, except for medical or natural disaster relief evacuation
services.
13. Provision of all water sports including under water activities and river safaris.
14. Provision of accommodation in a private residence or property that accommodates tourists,
international students or overseas visitors who are paying guests excluding any pre-school
registered by the Ministry of Education, primary school, secondary school, the Fiji National
University, Montfort Boys Town, the Pacific Regional Seminary, the Pacific Theological
College and the University of the South Pacific, or any other similar educational institution
as approved by the CEO, but does not include any educational institution that is carried on
for the purposes of commercial profit or gain to any proprietor, member, or shareholder.
15. Provision of similar services listed in all the above conducted by an unlicensed operator.
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ACT NO. 17 OF 2020
[Section 1] Short title and commencement
(1) This Act may be cited as the Service Turnover Tax (Repeal) Act 2020.
(2) This Act comes into force on 1 August 2020.
[Section 2] Repeal
The Service Turnover Tax Act 2012 is repealed.
[Section 3] Savings and transitional provisions
Notwithstanding the repeal of the Service Turnover Tax Act 2012 and the consequential
amendments provided under section 4 and the Schedule—
a) any Service Turnover Tax imposed under the Service Turnover Tax Act 2012 continues to
apply to transactions entered into and paid before 1 August 2020;
b) the Chief Executive Officer of the Fiji Revenue and Customs Service continues to exercise
the powers provided under section 5A of the Service Turnover Tax Act 2012 in relation to
transactions entered into before 1 August 2020;
c) an accountable person registered under the Service Turnover Tax Act 2012 and deemed
to be registered under the Environment and Climate Adaptation Levy Act 2015 before 1
August 2020 continues to be deemed as registered in accordance with the Environment
and Climate Adaptation Levy Act 2015;
d) Service Turnover Tax payable before 1 August 2020 which is collected by an accountable
person is held in trust for the State pursuant to section 22 of the Tax Administration Act
2009; and
e) the payment of Service Turnover Tax payable under the Service Turnover Tax Act 2012
before 1 August 2020 must be recovered in accordance with the procedures and powers
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provided under the Tax Administration Act 2009 as though the Service Turnover Tax Act
2012 had not been repealed.
[Section 4] Consequential amendments
The Acts listed in the Schedule are amended as set out in that schedule.
