The Fiji Revenue and Customs Service announced Fiji’s 2026–2027 National Budget, which aims to support economic growth by introducing new tax incentives for sectors considered important to the economy. More specifically, the budget proposes tax incentives for sports, manufacturing, tourism, animal welfare, training, electric vehicles, and business funding platforms. Simultaneously, the Fiji government plans to extend several existing tax relief measures, allowing businesses and other eligible taxable persons to continue benefiting from previously introduced incentives.

Key Insights from the 2026–2027 National Budget

The budget includes several changes to Fiji’s VAT rules. The VAT refund claim period for diplomatic missions and international organizations would be brought into line with the general three-year claim period.

For the tourism industry, new time-of-supply rules would provide that VAT on tourism-related supplies is accounted for when the customer checks out or when the stay ends, rather than at an earlier point. For tourism sectors, the government plans to introduce a new 5% tourism services tax from September 1, 2026, applying to tourism operators with annual turnover exceeding FJD 2 million (approximately USD 900,000).

Import VAT would also apply to electric motor vehicles at the time of importation. The government also plans to introduce a drug rehabilitation incentive, exempting capital goods imported for establishing drug rehabilitation centres from import VAT.

Additionally, the budget also proposes introducing country-by-country (CbC) reporting for multinational groups with annual global revenue of at least EUR 750 million, while new automatic exchange of information (AEOI) rules and a beneficial ownership framework would strengthen international tax transparency and reporting.

Conclusion

In conclusion, the 2026–2027 National Budget represents a dual-track strategy to bolster Fiji’s economic growth through targeted tax incentives while significantly enhancing fiscal transparency and international compliance. By balancing support for vital sectors such as tourism and green initiatives with rigorous global reporting standards, the budget underscores a strategic pivot toward a sustainable and modernized tax administration that is increasingly aligned with international expectations.