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  • Business
  • Updated: February 02, 2020

FG Begins Implementation Of 7.5% VAT

FG Begins Implementation Of 7.5% VAT

 

The Federal Inland Revenue Service (FIRS) under a strict directive from the federal government begins implementation of the 7.5% Value Added Tax from Saturday 1st February 2020.

This was announced by the executive chairman of FIRS, Mohammed Nami while speaking on a breakfast programme of the Nigerian Television Authority (NTA) on Saturday.

The 7.5% VAT, which was signed under the 2019 Finance Act, is meant to help the government increase revenue for 2020 projects, finance key government projects primarily in the areas of health, education and critical infrastructure and support micro, small and medium Enterprises.

Nami added that businesses should be registered with the FIRS for Value Added Tax (VAT) purposes and any business that goes contrary will face the wrath of the government.

“It’s your statutory responsibility whether you just registered today with Corporate Affairs Commission to come over to the Federal Inland Revenue to register as VAT agent. That is the first responsibility.

“The second responsibility is that you should keep a good record of your transaction because if you don’t keep good records and eventually during the compliance process and monitoring process it is discovered that you have traded well above N25m, the taxes will be paid in arrears,” he said.

He, however, exempted the pharmaceuticals, educational items, essential commodities and food commodity including flour and starch meals; fruits, nuts, pulses and vegetables of various kinds; roots such as yam, cocoyam, sweet and Irish potatoes; meat and poultry products including eggs; milk; salt and herbs of several types; natural water and table water from paying VAT.

 

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