Affected businesses in CBD given licence and VAT flexibility
January 26, 2025 10:23 pm | Posted in Business News | Share now TwitterFacebook
By Anita Roberts.
Businesses in the Port Vila’s Central Business District (CBD) impacted by the earthquake will not face penalties for late business licence and Value Added Tax (VAT) payments end of this month.
This assurance was given by the Acting Director of the Department of Customs and Inland Revenue (DCIR), Collin Gesa.
A total of 101 affected businesses in the CBD are licensed and registered for VAT while nearly 88 are licensed but not VAT-registered, according to him.
He said a plan to support affected businesses during the recovery period has been approved by the Economic Sub-Committee, and will be submitted to the Recovery Operations Centre (ROC).
Gesa mentioned that they have dedicated a team through the Tax Payer Services to assist those affected, and will approach each case individually.
Flexibility will be applied, meaning business licences may be delayed depending on whether they are relocating and resuming in the coming days or developing a transitional plan, he said.
The Acting Director said that they were surprised to see that some businesses, despite being affected, have still filed returns and paid taxes.
“This is a testament to the resilience of some people who remain law-biding citizens. Even in the face of disaster, they continue to fulfil their legal obligations,” he said.
“In terms of business licences, for those who decide to relocate and will resume operations in the coming days, we will work with them as part of the government’s assistance.
“Regarding VAT, the due date is 27th of each month (If it falls on a weekend and/or public holiday then the due date is shifted to the first working day). The VAT Act and the Tax Administration Act No.37 of 2018 allow for flexibility, meaning we can manage affected businesses by deferring due dates. Businesses can also file default assessments, nil returns, or work with us to submit returns.”
He said they understand the importance of cash flow for businesses registered for VAT with VAT returns, and are committed to processing refunds quickly to support them. One example of the business they have supported is the national airline.
For road tax, the Acting Director said any vehicle damaged in the earthquake should be reported to the department before March 31.
