August 2021 VAT Compliance: What to Know and Do
- We take a break today from the VAT Politics and the Search for Focus series and the analytics that adorn it and torch on the more pressing issue of what you need to know and do with your August 2021 Value Added Tax (VAT) compliance.
- As you may know, you were ordinarily to have computed, remitted and filed your August 2021 VAT Returns before Tuesday, September 21, 2021. In actual fact and as at today the morning of Thursday, September 16, 2021, you are still exactly to do as you have always done in the circumstance that nothing has really changed despite the fast-moving currents. The VAT you have collected on behalf of FIRS is still payable to it.
- Since the publication of VAT Politics and the Search for Focus (Part 2) , the following new developments have been unearthed or happened in the ongoing VAT wars:
- Nigeria’s Federal Inland Revenue Service (FIRS) had appealed the Monday, August 9, 2021, judgment of the Federal High Court (FHC) sitting at Port Harcourt, Rivers State in Attorney General for Rivers State v. FIRS & Another [BO4] at the Court of Appeal, Port Harcourt Judicial Division. Recall that it was this judgment that limited the taxing powers of the Federal Government of Nigeria (FGN) to the imposition and administration of only taxes on incomes, profits, capital gains and stamp duties. The judgment states that the FGN has no powers to impose and administer any other taxes including VAT, Withholding Tax et.al.