FIRS to Introduce VAT on Online Transactions in January
The Federal Inland Revenue Service (FIRS) said it will begin to charge Value Added Tax (VAT) on online transactions beginning from January 2020.
The Executive Secretary of the Service, Mr Tunde Fowler disclosed this on the occasion of the African Tax Administration Forum (ATAF) Technical Workshop which held in Abuja Monday.
Fowler said there are so many online business transactions in Nigeria with many countries identifying Nigeria as a good market.
According to him, it was necessary to take advantage of the opportunity to generate revenue for the country.
Fowler however said the commencement date of January depends on the approval received from the federal government.
He added that once approval is received, banks will be asked to charge VAT on all online transactions.
He said, . “It is, however, also bearing in mind the rights of our taxpayers”.
He maintained that VAT would be needed to finance development projects in the country.
He said, “VAT revenue is shared 15 per cent to the Federal Government, 50 per cent to state governments and 35 per cent to local governments”.
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