SERVICE TURNOVER TAX For Hoteliers and Tourist Marine Vessel Operators

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Deemed STT registration This shall apply to any of the following: • The person who is responsible for the daily management of a prescribed service is deemed to be the “accountable” person as from 1st January 2012. • The person who is registered under the Service Turnover Tax Decree 2012 shall be deemed to be the “accountable” person. • The precedent partner in the case of a partnership and the manager in the case of a body of persons shall be deemed to be the “accountable” person. Accommodation Services subject to STT Licensed hotels and vessels engaged in the carriage of tourists within Fiji and which provide overnight accommodation for passengers should charge STT. The definition of a hotel is given in the Hotels & Guest Houses Act. Hotels are licensed businesses that receive guests or travelers for a fee and include: • a boarding house, lodging house, guesthouse or caravan. • any part of a building, vessel, premises, structure, caravan or house on wheels. • any place used by a hotel for overnight accommodation such as tents, camp sites. Accommodation Services not subject to STT It does not include accommodation in public institutions and those owned by registered charitable trusts/religious bodies and other similar educational/vocational institutions. Who is responsible for collecting STT? Any person who is responsible for the daily management of a prescribed service and who has levied the STT on service charges must account for it. This person is referred to, as the “accountable person” and any correspondence or queries on STT will be sent to him. Accounting for STT The Accountable person must account for STT in monthly returns. A STT return should be completed and submitted with a cheque/cash for the STT applicable on the turnover for that month within 30 days. The forms are available on our website and Customer Service Centers. 2
The Accountable Person may issue bills that are STT inclusive or STT/VAT inclusive or separately depending on the record keeping system adopted. However, adequate records must be kept for audit purposes. STT Penalties • Any STT remaining unpaid after the due date for payment – 25% Late Payment Penalty applies. • If lodgment is late, 20% Late Lodgment Penalty will apply on the outstanding amount on the return. Offences Action will be taken to recover the unpaid STT and penalties from third parties (such as banks) or through the courts. The courts can impose a minimum fine of FJ$15,000 or to imprisonment for a term not exceeding 12 months or to both a fine and imprisonment on any of the following offences: • failure to keep adequate records and accounts relating to the turnover of the hotel. • failure to allow authorized tax officials from entering the hotel premises to inspect turnover, collection or payment records • failure to produce any books or records relating to the turnover and collection/payment of hotel turnover tax. The Commissioner can also make an offer to compound an offence. Part C - STT Calculation Guidelines for calculating STT The two tables below show how the gross amount paid by a hotel guest should be calculated if a hotel owner is registered for STT and VAT purposes. 3
Page 1 and 2: SERVICE TURNOVER TAX For Hoteliers
Page 3: Part A - Service Turnover Tax What
Page 7 and 8: Part D - Registration How and when
Page 9: FIJI REVENUE & CUSTOMS AUTHORITY He

SERVICE TURNOVER TAX For Hoteliers and Tourist Marine Vessel Operators

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