Nigerian government to effect VAT payment for all online transactions from next year

FIRS Chair, Babatunde Tunde Fowler at the African Tax Administration Forum in 2018.
  • Nigeria to effect VAT payment for all online transactions from January 2020.
  • According to Fowler, Nigeria currently generates 17% from VAT revenue lower than what Senegal generates for same tax component.

The Nigerian government will begin to impose a value-added tax (VAT) on online transactions effective from January 2020, Babatunde Fowler, FIRS Chairman has said.

According to TheCable, Fowler stated this on Monday, August 26th, at the African Tax Administration Forum (ATAF) technical workshop in Abuja.

He said the country is ready to tap into the potentials of generating more revenue from the digital economy. 

According to Fowler, currently, Nigeria generates 17% from VAT revenue while Senegal generates about 51% from the same tax component.

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

“VAT remains the cash cow in most African countries, with an average VAT-to-total tax revenue rate of 31%. This is higher than the Organisation for Economic Cooperation and Development’s average of 20%,” TheCable quoted Fowler as saying.

The FIRS Chairman, however, said the date of commencement of the VAT on online transactions would be subject to government’s approval.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows

Willy Paul wins against Diana Marua in court

Willy Paul wins against Diana Marua in court

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi