Lagos State Government joined the Rivers State Government earlier today and became the second State to enact its VAT Law in Nigeria. This event was indeed foreseen from Monday, September 6, 2021, when the Federal High Court (FHC) sitting at Port Harcourt, Rivers State in Attorney General for Rivers State v. FIRS & Another, refused to grant the FIRS’ application for the stay of execution of the August 9, 2021 decision of the FHC. The FHC had on August 9, 2021, declared the VAT Act 1993 (as amended), unconstitutional. Although the FHC’s August 9, 2021 decision was in the manner of a declaration of the law, in which case nothing was to be executed or executable, yet the FIRS had proceeded to apply for the stay of execution, apparently seeing the implication of the August 9, 2021 decision on its VAT revenue collection mandate for the Federation.Read More
Value Added Tax (VAT): The Major Highlights
A quick question for you.
Have you ever tried to play smart and ended up regretting it? Chances are you have. Well that is exactly how it feels when you fail to remit your taxes by the due date, and it comes biting back.
Let us take a little trip down memory lane. The Value Added Tax (VAT) Decree of 1993 was the first to introduce VAT to the Nigerian economy. Since then, it has witnessed series of amendments including the most recent Finance Act 2019. The amendments are geared towards ensuring simplicity and compliance. The regulation that currently governs the administration of VAT in Nigeria is the Value Added Tax Act CAP V1 LFN 2007 (as amended) and the Finance Act 2019.Read More