The Federal Inland Revenue Service (FIRS) is about to launch an automated VAT filing and collection system for branded shops, superstores, general supermarkets, standard restaurants and eateries in Nigeria. Effective from 1 April 2020, the electronic VAT platform (VATrac) will be the only approved way to file VAT returns and process payments of these businesses.
Covered businesses should visit the nearest FIRS tax office for access to the new eVAT platform. The eVAT platform will work seamlessly with any standard point of sales (POS) or revenue collection device. Henceforth, transactions or sales receipts to customers must show the following details;
The notice does not specify whether small businesses exempt from VAT should still register for eVAT. With the automated VAT filing and collection system, FIRS will be able to audit and reconcile all VAT transactions. Other benefits include a higher rate of VAT compliance and ease of remitting taxes. As the implementation will begin in three weeks, taxpayers should align their transactions with FIRS VATrac promptly.
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