Total VAT collections rose from 106 billion Vatu in 2012 to a peak of nearly 190 billion in 2021, before declining to 152 billion in 2022. Key contributors include wholesale and retail trade, construction, and accommodation services, which consistently show strong VAT returns. These trends indicate the growing role of formal sector activity in domestic revenue mobilization, while lower collections in agriculture and informal sectors may suggest persistent compliance gaps or structural informality.

It is also imposed on most goods imported into Vanuatu. Some supplies are specifically exempted from VAT, while others are zero-rated (i.e. treated as taxable supplies but at a rate of 0%).

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This table provides metadata for the actual indicator available from Vanuatu statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Vanuatuan statistics, this table should be consulted for information on national methodology and other Vanuatu-specific metadata information.

Definition

The indicator “Value Added Tax (VAT) Collected by Major Industry” measures the total Value Added Tax (VAT) collected from registered businesses, disaggregated by major industry groups. It captures the contribution of each sector to total VAT revenue collected by the Department of Customs and Inland Revenue.
Concept

This indicator reflects the concept of domestic revenue mobilisation through indirect taxation, specifically VAT. VAT is a consumption tax levied on the value added to goods and services at each stage of production or distribution. As a broad-based tax, it is a major source of government revenue and a key instrument for financing public expenditure. Disaggregating VAT by industry supports analysis of the economic structure, sectoral tax compliance, and the relative productivity of different sectors in contributing to the tax base.
Rationale

Tracking VAT collected by industry provides valuable insights into the distribution of taxable economic activity across sectors. It helps identify which industries are contributing most to public finances and can signal areas where compliance is strong or where enforcement may need to be strengthened. Trends over time can reveal structural shifts in the economy or the impact of tax policy changes. High VAT collection in certain sectors may indicate robust consumer activity, while low figures in others may reflect informal practices or underreporting.
Method of Computation

Aggregate the total VAT collected for each major industry group, based on reported VAT returns, and recorded transactions from VAT-registered businesses. Include both domestic and import-based VAT where relevant, ensuring values are net of refunds.

Formula: VAT Collected by Industry (I, year Y) = ∑ VAT Revenue from Industry I in year Y
Unit of Measurement

Millions of Vatu
Frequency of Collection

Annually
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