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Vanuatu Tax Filing Guide: No Income Tax Return, VAGST Filing, Business Licenses 2026

Vanuatu has no personal or corporate income tax return to file. The main compliance obligations are VAGST returns for registered businesses (monthly or quarterly), annual business license renewal through the VFSC, and VNPF contribution remittances. Here is how tax filing works in 2026.

The Vanuatu Revenue & Customs (VRC) administers VAGST, customs duties, and other consumption taxes. Since there is no income tax, there are no income tax returns, no annual tax filings for individuals, and no corporate tax returns. The VFSC handles company annual returns and business license renewals. The Vanuatu National Provident Fund (VNPF) manages mandatory pension contributions. Compliance is significantly simpler than in virtually any other country. VAGST compliance details →

Real-world example: A Port Vila retail business with VUV 8,000,000 annual turnover must: file monthly VAGST returns by the 30th of the following month (12.5% rate), remit employee and employer VNPF contributions (EE 4%, ER 6%) monthly, and renew its business license annually by March 31 (approximately VUV 35,000 fee). Total annual compliance cost: approximately VUV 50,000 in fees and a few hours of bookkeeping. An employee with no business activity has zero filing obligations. Corporate registration →

Filing Obligations in Vanuatu

  • Personal income tax: No return — no personal income tax exists in Vanuatu
  • Corporate income tax: No return — no corporate income tax exists in Vanuatu
  • VAGST (VAT): Monthly or quarterly returns for registered businesses — due within 30 days after the tax period
  • Business license: Annual renewal by March 31 — fee VUV 25,000-50,000+ depending on business size
  • VNPF contributions: Monthly remittance of EE 4% and ER 6% — due by the 15th of the following month
  • Company annual return: Filed with VFSC — includes financial statements
  • Customs declarations: Required for all imports with applicable duties and VAGST paid at entry

Vanuatu's filing system is remarkably simple compared to OECD countries. Most individuals have zero filing obligations. Small businesses need only manage VAGST and VNPF compliance.

Business License Renewal

  • Renewal deadline: March 31 annually
  • Fee: VUV 25,000-50,000 for small businesses; higher for larger enterprises
  • Process: Submit renewal application to VFSC with updated business information
  • Penalties: Late renewal incurs penalties and may result in license suspension

Foreign-owned businesses may face different fee structures. It is advisable to engage a local agent for business license renewal to ensure compliance.

Record Keeping Requirements

While there is no income tax, businesses must maintain proper records for VAGST and VFSC compliance. Required records include: accounting books and records, VAGST invoices and receipts, bank statements, contracts, payroll records, and VNPF contribution records. Records must be kept for a minimum of 7 years. Electronic records are acceptable. The VRC may conduct VAGST audits and request supporting documentation.

Do I need an accountant in Vanuatu?

Small businesses with straightforward VAGST obligations can manage compliance themselves. However, most businesses engage a local accountant or bookkeeper to handle VAGST returns, VNPF remittances, and business license renewal. Given the simplicity of the tax system, accounting costs are generally low compared to countries with income tax.

What happens if I don't comply with VAGST requirements?

Non-compliance with VAGST can result in penalties, interest on late payments, and potential business license suspension. The VRC has audit and enforcement powers. For serious or persistent non-compliance, legal action may be taken. It is important to file VAGST returns on time even if no tax is due.

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