A fiscal revolution is brewing in the Pacific region
The Pacific region, long known for its paradise islands, tourist resorts, and tranquil pace of life, is now experiencing an unprecedented wave of e-invoicing and fiscal transformation. What is driving this change, and why are so many countries in the region adopting the same fiscalization model?
First, let us consider the historical context. Fiscalization is not a new concept in the region, as countries such as Fiji and Samoa have already implemented it as early as 2017–2018.
The model introduced in these jurisdictions relies on the issuance of invoices that the system signs, prints out, and hands to the buyer at the moment of creation. Meanwhile, the system simultaneously transmits the invoice data to the Tax Authority’s system, provided that an internet connection is available.
Latest fiscalization updates in the Pacific – by country:
- Fiji – FRCS news: Fiji recently upgraded its previous version of the fiscalization system, VAT Monitoring System (VMS), and informed all Phase 3 participants of the upcoming implementation and compliance deadlines. All accredited vendors are currently transitioning from version 2 to version 3 and must adapt and reaccredit to the system’s new functionalities by the end of 2026.
- Samoa – MRC news: In line with Fiji, Samoa has also received an upgrade to its previous version of its fiscalization system, Tax Invoice Monitoring System (TIMS). Therefore, vendors that were previously operating under the older version will need to reaccredit and comply with the new functionalities of the upgraded system. As in Fiji, there is a transition period in place, but the MRC has yet to define its deadlines as the rollout of the new version of the system progresses.
- Vanuatu – DCIR news: Vanuatu is adopting the same model already in use in Fiji and Samoa and plans to introduce it between August 2025 and January 2026 to improve nationwide VAT collection. Collins Gesa, Deputy Director of the Inland Revenue, confirmed that the system, under the name Vanuatu Sales Monitoring System (VSMS), will be rolled out in phases.
- Papua New Guinea – IRC news: Papua New Guinea has also chosen the abovementioned model and system, known as the Goods and Services Monitoring System (GMS) in this jurisdiction. By the end of this year and throughout the next one, GMS will begin transitioning the nation into a fully fiscalized economy.
The system behind this revolution
What distinguishes the fiscalization monitoring system in the Pacific from others and makes it particularly suitable for the small island nations is its dual functionality: it can operate in online mode through a Virtual Sales Data Controller (V-SDC) or in offline mode through an External Sales Data Controller (E-SDC). These functionalities are particularly important for the Pacific region, which is prone to natural disasters such as cyclones, tsunamis, earthquakes, and volcanic eruptions.
These events, coupled with frequent internet blackouts, outages, and technical disruptions, make this flexibility essential. The offline mode enables taxpayers to continue issuing fiscal invoices even without internet connection.
Moreover, each receipt is uniquely identifiable by its QR code, which any user can scan to verify the validity of the invoice. This feature ensures that data flows into the system even when the Internet is unavailable, as this information is embedded within the QR code.
The Pacific region, interested in adopting this model for their fiscalization
Finally, it is important to note that the successful implementation of the fiscalization model in these countries has drawn the attention of other nations in the region, many of which are now seriously considering its adoption.
