Vanuatu overhauls VAT administration

The South West Pacific state of Vanuatu has re-organised its Value Added Tax administration. The changes in the Inland Revenue function are designed to help improve the detection of unreported VAT supplies and improve audits.

The principle change in administration of registered businesses is a segmentation according to the size of the business and the full-time allocated staff across each segment. This includes distinct management structures, with tailored training programmes for the staff. The new groups include:

• Large
• Medium; and
• Micro

The above change will be implemented from January 2015.