Transcript: Fiji eInvoicing Benchmark: Compliance Made Easy
Fiji's Digital Tax Transformation: The VAT Monitoring System Journey
Before Samoa stepped onto the digital tax stage, Fiji had already taken the lead in transforming its tax administration.
While many countries across the region were still weighing their options, Fiji was already deep into implementation. At a time when outdated systems continued to slow progress, Fiji chose a different path. Rather than maintaining the status quo, it embraced a future driven by transparency, efficiency, and digital accountability.
The question naturally followed:
Can a tax system built on data, smart architecture, and real-time monitoring restore trust in public finance?
That is where the Fiji Revenue and Customs Service (FRCS), together with DataTech International, introduced the VAT Monitoring System (VMS), powered by the TaxCore platform.
Our story begins with one of the key figures behind Fiji's tax transformation—Kelerani Dawai, Director of Compliance at the Fiji Revenue and Customs Service.
She reflects on her role and the vision that inspired the adoption of the VAT Monitoring System.
Kelerani Dawai
"Thank you to DataTech International for giving FRCS the opportunity to share our journey and our thoughts on this important area of innovation.
My role is to ensure that taxpayers and traders comply with Fiji's customs and tax legislation. That means making sure they provide accurate information, maintain proper records, and most importantly, pay the correct amount of tax.
Compliance is not only about collecting revenue. Taxpayers also claim refunds and report losses, so our responsibility is to ensure that every aspect of the system operates fairly and accurately."
Every major transformation comes with challenges.
As the first country in the region to implement the VAT Monitoring System, Fiji encountered its own obstacles. Initial resistance was inevitable. Businesses were skeptical, technical capacity was limited, and many people misunderstood the purpose of the system.
Despite these early difficulties, persistence and continuous engagement gradually changed perceptions. The system gained acceptance and ultimately began delivering measurable results.
Today, compliance has improved, revenue collection has strengthened, and tax administration operates more efficiently than before.
But the story extends beyond statistics. It is also about the businesses, workers, and citizens whose everyday interactions with the tax system have become simpler and more transparent.
Kelerani Dawai
"Like any major change, there was resistance.
When the VAT Monitoring System was introduced through the Electronic Fiscal Device Regulations, there was considerable opposition from the private sector and the business community. Much of that resistance came from a lack of understanding about why the system was being implemented.
What people need to understand is that the Fiji Revenue and Customs Service is responsible for collecting more than 85 percent of government revenue.
VAT alone represents almost half of government revenue through both import VAT and domestic VAT.
That makes accurate monitoring essential.
Without digital tools, we simply do not have the resources to manually inspect every business or verify every transaction. Doing so would be extremely expensive and labour-intensive.
A digital solution was therefore the logical choice.
The implementation also coincided with the COVID-19 pandemic, which resulted in delays and several postponements before the rollout could continue."
Even with those delays, the system began changing taxpayer behaviour.
Kelerani Dawai
"What we have seen is the growth of a stronger voluntary compliance culture.
Some businesses that were not yet required by legislation to join the programme voluntarily chose to adopt the system because they recognised that it would improve their own reporting and compliance."
The benefits quickly became evident.
Kelerani Dawai
"During the 2022–2023 Budget, Fiji adjusted its VAT rates. At that time there were three VAT rates: 15 percent, 9 percent, and zero-rated goods.
One of the greatest strengths of the system was its ability to detect anomalies where businesses were applying incorrect VAT rates.
Whether those errors were accidental or intentional, they affected both reporting and revenue collection.
Previously we would have had to conduct extensive field inspections to identify these issues.
Instead, the system automatically generated reports highlighting where incorrect rates had been applied.
Later, when VAT was standardised at 15 percent, consumers became concerned because prices increased significantly.
Complaints were submitted through the Consumer Council, the Fiji Competition and Consumer Commission, and the Government.
Working with DataTech International, we generated inflation reports for specific products.
Chicken was selected as one example because it is one of Fiji's most commonly purchased products.
Within a single day we were able to compare prices across supermarkets throughout the country.
For one particular product, prices ranged from around FJD17 to more than FJD24.
That increase was far greater than what could be explained by the VAT adjustment alone.
Without the VAT Monitoring System, obtaining that information would have been extremely difficult.
The system gave us immediate access to reliable data and helped government agencies respond quickly."
Digital transformation is not only about technology.
It is equally about collaboration.
Kelerani Dawai
"The system has strengthened collaboration with taxpayers.
Businesses no longer need to visit our offices for every issue.
Our business teams and IT teams communicate directly with taxpayers to resolve problems.
Today there is genuine appreciation for the changes that have taken place.
Businesses understand that the VAT Monitoring System is here to stay."
Behind every successful technology programme is a strong partnership.
For Fiji, that partnership has been between FRCS and DataTech International.
Together they planned, implemented, and continuously refined the VAT Monitoring System.
Kelerani Dawai
"Throughout the implementation process, DataTech International has developed a deep understanding of Fiji and the way we work.
They understand our culture, our bureaucracy, and even what we jokingly call 'Fiji Time.'
Despite delays and challenges, we continued working together through open communication and close collaboration.
Regular visits, constant discussions, and accessible communication platforms have helped resolve issues quickly.
Most importantly, every solution has focused on serving our customers."
Data has become one of the most valuable assets in modern tax administration.
Kelerani Dawai
"The strength of this system lies in its data.
Being able to sit in the office, access dashboards, and generate reports demonstrates how powerful digital tax administration can be for a developing country.
Many countries are now looking at Fiji's experience because they face similar challenges and depend heavily on indirect and direct taxation."
Looking ahead, Fiji continues expanding its digital tax ecosystem.
Kelerani Dawai
"The first requirement is appropriate legislation.
Countries such as Papua New Guinea and Vanuatu have approached us to learn from Fiji's experience.
We shared our Electronic Fiscal Device Regulations as well as our phased implementation strategy.
We did not adopt a 'big bang' approach.
Instead, we introduced the system in carefully managed phases.
Those lessons have proven valuable for other countries considering similar reforms."
Phase Three is now the next step.
Kelerani Dawai
"Our immediate focus is Phase Three.
Even then, not every sector will be included immediately.
Looking further ahead, however, we believe the entire economy should eventually adopt electronic invoicing.
This technology should extend beyond the current phases to include businesses across the economy, including those operating in the informal sector.
The benefits go beyond tax collection.
Electronic invoicing helps small businesses improve their reporting, better understand their performance, and contribute more effectively to national economic growth."
Finally, one question remains.
What advice would Fiji offer to another country considering digital tax reform?
Kelerani Dawai
"The first step is to clearly define your objectives.
For Fiji, our goals were to increase voluntary compliance, improve revenue through better compliance, and bring more businesses into the tax system.
Once those objectives are clear, the next question becomes simple:
Why wouldn't you choose a system that helps you achieve them?
As Director of Compliance, I fully support this approach because, ultimately, it is all about compliance."
Fiji's experience answers the question posed at the beginning.
Can a digital tax system strengthen public trust?
The evidence suggests that it can.
The VAT Monitoring System powered by TaxCore is more than software. It represents a modern approach to governance built on transparency, accountability, and data-driven decision-making.
For countries seeking to modernise their tax systems, Fiji's journey offers a practical example of how digital transformation can improve compliance, strengthen revenue collection, and build a more sustainable future.