FIRS APPOINTS TELCOS AND DEPOSIT MONEY BANKS AS AGENTS FOR THE PURPOSES OF VAT COLLECTION

By a Public Notice titled ‘Value Added Tax Act (CAP V1, LFN 2004) (as amended): Appointment of Certain Companies to Withhold VAT’, the Federal Inland Revenue Service (FIRS) informed the public of the appointment of MTN, Airtel, All Money Deposit Banks (As Defined by the CBN Guidelines) (Appointees) as agents to withhold Value Added Tax (VAT) charged on all taxable supplies made to them effective 1st January 2023.

Appointees are required to remit the withheld VAT in the currency of the transaction to the FIRS on or before the 21st day of the month following the month in which the taxes were withheld. Please note that filing and remittance of the withheld VAT should be done separately from filing and remittance of VAT due on the Appointee’s taxable supplies. A supplier whose output VAT is withheld can offset the input VAT paid on the goods purchased or imported.

Sanctions will be imposed on non-compliant Appointees. We advise you contact your tax manager for further information on the need for compliance. In the event you need support, please do not hesitate to contact any of the following: Adedayo Adebisi (a.adebisi@taxaide.com.ng); Emmanuel Emereuwa

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