Gov’t strengthens business transparency with new tax system
March 11, 2026 10:26 pm | Posted in Business News | Share now TwitterFacebook
The Government of Vanuatu has launched a landmark tax reform called the Vanuatu Sales Monitoring System (VSMS).
Released through the Department of Customs and Inland Revenue, the system is designed to modernize tax administration, strengthen transparency in business transactions, and promote fair competition across the market.
Speaking at the launch yesterday, Deputy Prime Minister (DPM) Johnny Koanapo highlighted the importance of the initiative for national development.
“Businesses are the backbone of our economy. Their contribution to public revenue is vital, and the introduction of VSMS ensures that this contribution is recognized in a transparent, fair, and efficient manner,” he said.
He said the VSMS represents a major step forward in the digitalization of Vanuatu’s tax system, enabling: greater transparency in business transactions; stronger measures to combat tax evasion and the informal economy; and simplified compliance through standardized fiscal solutions and digital processes.
The DPM said that the reform is not only a modernization initiative but also a legal obligation under the laws of the Republic of Vanuatu.
“The system is now fully operational,’’ he said.
“Large and very large businesses must comply by July 1, ensuring their systems are accredited and actively issuing invoices through the VSMS platform.”
Acknowledging the investment required from businesses, the Government has committed to supporting taxpayers throughout the transition. Training sessions, guidance, and ongoing communication will be provided to ensure a smooth and effective implementation.
“The success of this reform depends on partnership. Government and business must work together to build a stronger, more transparent, and more efficient tax environment for Vanuatu,” the DPM said.
As part of this commitment, the Department of Customs and Inland Revenue has begun rolling out a VSMS awareness campaign in SHEFA Province.
The campaign starts with large taxpayers and will progressively extend to medium, small, and micro businesses.
These awareness sessions are designed to ensure that all taxpayers clearly understand their obligations and the mandatory deadlines for enrollment and compliance.
This phased approach reflects the Government’s determination to provide tailored guidance and ensure that every business, regardless of size, is prepared for the transition.
The Government expressed gratitude to the business community for their cooperation and reaffirmed its commitment to building a modern, fair, and predictable tax system that supports national development.
