Nigerians to start payment of VAT online transactions next year
The Federal Inland Revenue Service (FIRS) has announced that Nigerians will start the payment of value-added tax (VAT) on both domestic and international online transactions from January 2020. FIRS executive chairman, Babatunde Fowler revealed this on Monday at the African Tax Administration Forum (ATAF) technical workshop in Abuja. He however noted that the date to commence the VAT on online transactions would be subject to government’s approval. “We have thrown it out to Nigerians. Effective from January 2020, we will ask banks to charge VAT on online transactions, both domestic and international. “VAT remains the cash cow in most African countries, with an average VAT-to-total tax revenue rate of 31%. This is higher than the Organisation for Economic Cooperation and Development’s average of 20%. “This statistics, therefore, is a validation of the need for us to streamline the administration of this tax with the full knowledge of its potential contributions to national b