Nigerians To Pay 5% VAT On Online, Internet Transactions January 2020 – FIRS

Federal Inland Revenue Service is set to impose value-added tax on online, Internet transaction.

The Executive Chairman of FIRS, Babatunde Fowler, who made this open revealed that the value -added tax will be on both domestic and international.

Speaking at the African Tax Administration Forum, Abuja, he said, “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.

Stressing further, the Chairman he said; “VAT remains the cash cow in most African countries, with an average VAT-to-total tax revenue rate of 31 per cent. This is higher than the Organisation for Economic Cooperation and Development’s average of 20 per cent. 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 budgets”

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