News & Education
The Federal Inland Revenue Service (FIRS) has issued a public notice on the VAT Modification Order, 2020. The Service noted that the notice, which is to give clarification on the Order, is sequel to the several enquiries received from taxpayers requesting to know whether or not some items are exempt from VAT in view of... Continue Reading →
Section 14 (3) & (4) of the Value Added Tax Act introduced a self-account provision for all supplies for which VAT was not charged. Section 14 (3) of the Act provides that: A non-resident company shall include the tax in its invoice and the person to whom the goods are supplied in Nigeria shall remit... Continue Reading →
The House of Representatives on June 2, 2020 rejected a motion sponsored by Honourable Unyime Idem (PDP, Akwa Ibom), seeking to suspend implementation of the 7.5% Value Added Tax (VAT) rate introduced by the Finance Act 2019 till January 2021, due to impacts of the COVID-19 pandemic. The sponsor noted that due to the pandemic,... Continue Reading →
The Federal Ministry of Finance has issued a Value Added Tax (Modification) Order, 2020 (the “Order”) with a commencement date of 3 February 2020. The Order gives clarifications on the list of exemptions in the First Schedule to the Value Added Tax Act (as amended), including the following: Basic food items: These refer to... Continue Reading →
The National Bureau of Statistics (NBS) has disclosed in its report on sectoral distribution of Value Added Tax (VAT) that the sum of N338.94bn was generated as VAT in first quarter 2020. According to the report, N293.04bn was generated in Q1 2019 representing, 9.87% increase Quarter-on-Quarter and 15.66% increase Year-on-Year. The report shows that professional... Continue Reading →
Input VAT is the VAT a taxable person pays on taxable goods and services purchased from a supplier. This VAT is usually paid to the supplier alongside the value of goods and services supplied. Output VAT is simply the VAT on sales of good and services, collectible by the seller. Section 14 (4) states that... Continue Reading →
The Federal Inland Revenue Service (FIRS) has issued an information circular to give clarification on the implementation of changes to Value Added Tax (VAT) in the Finance Act, 2019 that came into effect from 1st February, 2020. The circular provides clarification on the following provisions: Definition of Goods & Services - Section 2 The Finance... Continue Reading →
