The Director of Customs and Inland Revenue, Mr. Harold Tarosa, has announced plans to launch the Vanuatu Sales Monitoring System by mid-2025, a move expected to improve the collection of Value Added Tax (VAT) from businesses across the country.

Speaking in a special interview this week, Mr. Tarosa explained that the new system is designed to address revenue leakages and ensure fair contribution of VAT payments by all businesses.

“All along, there has been leakage in the revenue, so it’s about time to shut down a small loophole and see what the government can recover,” he said.

The system will provide real-time information on business sales, and will be rolled out in three phases, starting with business-to-individual transactions.

Mr. Tarosa emphasized the importance of understanding the business community’s operations, noting that some sales are made through credit or installment payments. He said the department will work closely with businesses to ensure that the system supports transparency without overlooking their challenges.

“Once we get to the final point of the transaction, we’ll be in a better position to manage things,” he added.

The Vanuatu Sales Monitoring System is a key step toward improving tax compliance and strengthening the country’s revenue collection framework.