The value added tax (VAT) rate in Nigeria is seven point five percent (7.5%). However, the VAT rate cannot be applied to all transactions. Why? Some goods and services are either zero-rated or exempt from VAT. In such instances, the standard VAT rate in Nigeria of 7.5% will not apply to these items. Therefore, it…
There is a new way to claim input value added tax (VAT) on the TaxPro Max. The Federal Inland Revenue Service (FIRS) has released a guide for taxpayers should file their VAT returns for April 2023 in May 2023. Every field deactivated earlier on will be enabled, while the automatic credit for purchases will be…
Introduction The Federal Inland Revenue Service (FIRS) has released a circular on the withholding of value added tax (VAT) in Nigeria in line with the provisions of the VAT Act 2004 (as amended). 1.0 Legal basis A taxable person who receives a taxable supply in Nigeria from a Non-Resident should withhold and remit VAT. The…
The Federal Inland Revenue Service (FIRS) has issued a Public Notice appointing MTN, Airtel, and all money deposit banks as collection agents of VAT (value added tax). FIRS’ appointment is in line with Section 14(3) of the VAT Act 2004 as amended. These companies will withhold VAT on all taxable supplies from customers. The amount…
Federal Internal Revenue Service (FIRS) has released guidelines on a simplified compliance regime for value added tax for non-resident suppliers (The Guidelines). The Guidelines clarify the obligations and procedures for value added tax (VAT) compliance by non-resident suppliers (NRS) supplying goods, services, or intangibles to persons in Nigeria through electronic platforms. The effective date is…
The Federal Inland Revenue Service (FIRS) has launched the TaxPro MAX portal for payment and filing of tax returns. Taxable persons in Nigeria and non-resident persons can use the new portal for tax processes. FIRS user guide for value added tax will help users navigate the online portal with ease. Visit https://taxpromax.firs.gov.ng Existing users can…
Welcome to the monthly series on Nigeria Tax Highlights. In this summary, we have put together the top 5 events that will bring us up to speed with the Nigerian taxation for July 2020. Here are the five (5) blog posts that shaped the Nigerian tax space in July 2020. Recap of tax news in…
The Federal Inland Revenue Service (FIRS) has released three new forms for filing monthly Value Added Tax (VAT) returns. Two VAT Form 002 that applies to head office and branch office while the third Form 006 is for withholding VAT at source as below. Headquarter Form 002 – Head office will provide the aggregate details…
When a person supplies taxable goods and services, the value added tax rate in Nigeria is 7.5% except for zero-rated and exempt items. The Finance Act 2019 contains changes to several provisions of the VAT Act, including exempt items in the First Schedule. Effective 3 February 2020, the Finance Minister has issued the Value Added…
Federal Inland Revenue Service (FIRS) has issued an information circular to clarify the amendments to the Value Added Tax (VAT) Act 2004 in the Finance Act 2019. The circular covers nine (9) sections. 1. Revised definition of goods and services Value Added Tax (VAT) is payable on services, tangible and intangible goods. When a person…