International VAT Guides – Kiribati

VAT rates in Kiribati 

How much is VAT in Kiribati? 

The Kiribati VAT regulatory framework for digital service providers is established in accordance with OECD standards for the digital economy and best practices.  The Kiribati VAT Act 2013, which came into force on January 1, 2013, introduced the provisional framework for non-resident digital service providers.

In the first version of the VAT Act, the non-resident providers of digital services have been identified as VAT accountable persons, when making B2C supplies of a wide array of electronic services, to local recipients. 

The original concept for VAT accountability on the supplies of electronic services was very general from a technical perspective. The same threshold rules applied at the time for all foreign service providers. 

The VAT Amendment Act 2025, which came into force on January 1, 2026, introduced long-awaited provisions that clarified the requirements for non-resident digital service providers, as well as the registration procedure, reporting rules, reverse-charge applicability, and penalty system. 

With the VAT Amendment Act 2025, the regulatory framework for non-resident service providers with customers in Kiribati is clear.

Currently, the VAT regime for non-resident digital service providers is fully operational. The non-resident digital service providers have an opportunity to register for VAT and fulfill their tax duties using simplified administrative procedures. 

VAT threshold in Kiribati

The VAT Kiribati Act, VAT Amendment Act 2025, and Revenue Administration Act are principal legislative instruments that coordinate the VAT compliance framework for non-resident digital service providers. 

The rules for VAT threshold in Kiribati for non-resident digital services providers have been updated on several occasions, and the currently applicable rules indicate the following changes: 

VAT registration threshold for resident businesses: AUD 100,000

VAT registration threshold for non-resident businesses: AUD 100,000

VAT registration threshold for foreign providers of digital services: AUD 100,000

VAT Taxable Activities in Kiribati

Types of taxable activities that mandate VAT registration:

• Supply of goods and services for consideration;
• Supply of digital services by non-resident providers
• Exports;
• Imports of goods and services

Tax Representative in Kiribati 

The VAT Amendment Act 2025, which came into force half a year ago, strengthened the framework for simplified registration and tax remittance. The regulations don’t per se require remote service providers to have a VAT representative in Kiribati. 

This reasoning is mentioned in the applicable regulations, and the specifics of the remote service provider, e.g., business model, non-compliant tax behaviour from previous records, could demand that NRDSPs delegate a local tax agent for VAT compliance. 

Tax registration

Non-resident providers of digital services or electronic distribution platform operators should register for VAT in Kiribati, following a specifically designated regime. 

VAT on Electronically Supplied Services in Kiribati 

Digital Services

Non-resident providers of digital services should register for VAT in Kiribati under the recently adjusted regulatory framework. New rules and requirements demand that foreign providers, or platform operators via which they provide their remote services, register as soon as they reach the threshold. 

The simplified registration is possible currently only through online registration by filling in the simplified registration template. 

Non-Resident providers of digital services are mandated to collect and report VAT for B2C transactions. The B2B transactions with locally registered taxable entities are regulated by the reverse-charge mechanism.

How much is VAT in Kiribati for Electronically Supplied Services?

VAT rate in Kiribati for digital services is 12.5%. 

Taxable Digital Services in Kiribati

The following types of digital services are taxable:

• Audio and video streaming services 
• SaaS services
• Intermediation platform services
• Payment facilitation services
• Cloud computing services and storage

Marketplace and Digital Platform Operators’ Rules

The foreign operator of a digital platform or marketplace has the same VAT compliance obligations as the direct supplier. When the operator facilitates the provision of remote services, supplied originally by the underlying provider(who isn’t registered for VAT), from the perspective of the VAT Act, it acts as a principal and becomes accountable for VAT on these B2C transactions. 

In these circumstances, the VAT collection and reporting is the sole responsibility of the platform operator. 

Invoicing Rules

A registered non-resident provider of remote services may be responsible for issuing a tax invoice for B2B supplies of imported services, following local requirements. 

For B2C transactions, in most cases, the issuance of the sales receipt in PDF form will be enough.

Foreign Currency Invoice in Kiribati  

In most cases, issuing an invoice in a foreign currency is permitted. A simplified VAT return can also be submitted in foreign currency if the Commissioner General accepts the request previously submitted by the respective taxable person. 

Remittance can also be processed in a foreign currency. 

VAT Returns in Kiribati

Simplified Return

Foreign providers of remote services should register online using the simplified VAT Kiribati registration template.

A simplified VAT return doesn’t allow foreign providers of digital services to claim input tax credits. 

Simplified VAT Return

Penalties for late reporting and omitted declarations 

Penalties for VAT Non-Compliance:

Failure to register when required may result in penalties, including fines, interest charges on unpaid VAT, and other penalties. 

Non-resident digital service providers could face different types of fines and penalties for late registration, late filing, and late payment. Some of the penalties that NRDSPs could face include:

• Late registration penalties – AUD 500 
• Issuance of erroneous invoice or lack of it – first offense AUD 100, each subsequent offense – AUD 500
• Late filing or non-filing penalties include a late filing fee of AUD 30 per month or part of a month.
• Late payment penalty of 15% on the unpaid amount due.
• Responsible persons shall be charged with 15% interest that accrues yearly on the unpaid tax due

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