After exceeding its revenue target last year, the Department of Customs and Inland Revenue has now raised its annual revenue target to VT27 billion, an increase of VT3 billion compared to the VT24 billion target set for 2025.

A key strategy to achieve this new target is strengthening Value Added Tax (VAT) monitoring across all registered businesses in the country through the implementation of the Vanuatu Sales Monitoring System (VSMS).

The system will allow customs officials to monitor sales transactions from businesses in real time, ensuring transparency and accountability in VAT payments to the Government.

Director of Customs and Inland Revenue, Harold Tarosa, said the department is placing strong emphasis on improving domestic VAT collection, which currently underperforms compared to collections from imports.

He explained that businesses are now being registered into three categories — Large and Very Large Taxpayers, Medium Taxpayers, and Small and Micro Businesses — each with specific deadlines to comply with the new Point of Sale system requirements.

Large and Very Large Taxpayers must complete and submit all requirements before 30 June. Medium Taxpayers have until 30 September to ensure their systems are fully accredited, registered, and operational. Small and Micro Businesses will be required to go live with the system by 31 December this year.

Director Tarosa called on all businesses to work closely with the Government to help meet the new revenue target, noting that the department collected over VT25 billion last year, exceeding its target by VT778 million.

He expressed confidence that with improved monitoring and cooperation from businesses, the department will be able to meet the new VT27 billion target this year.

VAT remains one of the largest sources of government revenue, and officials say improved collection will directly support better service delivery in health, education, and infrastructure for the benefit of the people of Vanuatu.