FIRS to impose VAT on online transactions, says Fowler

The Federal Inland Revenue Service (FIRS) says it will soon begin collection of Value Added Tax (VAT) on online transactions.

The Chairman of the agency, Mr Babatunde Fowler, made the disclosure in an interview with Journalists in New York on Saturday.

Fowler said, “soon, we will ask banks to impose VAT on online transactions for purchases of goods and services. We are going after everybody. I am sure you have heard that we have placed lien on some accounts of defaulters that have a billion naira turnover annually. So certainly, we are not leaving anyone out of the tax net,” he said.

Officially known as the Voluntary Asset and Income Declaration Scheme, the tax amnesty programme was launched in 2017.

It gave tax defaulters a one-year period of grace to declare and settle their unpaid taxes.

There have been complaints by some taxpayers of being wrongly targeted by FIRS in the clampdown.

Asked to comment on that, Fowler admitted, blaming it on "administrative error,” arising from the huge number of accounts involved.

“Well, there is certainly one or two instances where we made administrative error, but when you are looking at over 50,000 accounts, there is a tendency that sometimes an error might be made. For those that we made errors on, I wrote them personally apologising and of course we lifted the lien on their accounts.”

On plans by the Joint Tax Board to raise the country’s tax population to 45 million, Fowler said the agency was relying on multiple information sources.

These, according to him, include the country’s Bank Verification Number database and sister agencies with relevant information.

Source: Vanguard

×