The Hotel Turnover Tax (HTT) is renamed as Service Turnover Tax (STT).
This was revealed by the Fiji Revenue and Custom Authority (FRCA).
FRCA manager policy advice Kelera Buatoka Volavola said the new STT will also apply to other tourism related services such as rental car operators, inbound tour operators and events management operators.
For event management operators, recreation, entertainment and cinema operators, bars and nightclubs, home stay operators, bistros, coffee shops and restaurants with and annual gross turnover of $1.5m and above.
For all water sports, underwater activities, skydiving, hot air balloon rides, river safaris, aircraft charter or hire, including helicopters with an annual gross turnover of $300,000.
Volavola said the Small and Micro Enterprises (SME’s) will be required to lodge only one VAT return in a year. This will be applicable only to entities with gross annual turnover of $300,000 and below.
For registration purposes, VAT threshold will increase from $50,000 to $100,000.
She said FRCA and Ministry of Finance to expedite payment of VAT refunds.
She added 40 per cent investment allowance (excluding cost of labour) for extension and renovation expenses, with a minimum qualifying capital expenditure of $50,000, is available to existing businesses in Vanua Levu.
Volavola said the incentive is extended to 2014.
“All carried forward of losses to be reduced to 4 years and comes to effect immediately. Exception for hotel projects under the Eleventh Schedule – the carried forward of losses is 8 years.”
By Ropate Valemei