UNDERSTANDING VALUE ADDED TAX (VAT) IN NIGERIA

5 Dec

UNDERSTANDING VALUE ADDED TAX (VAT) IN NIGERIA

It is called Value Added Tax

It is very difficult to evade VAT due to BVN and Bank Statement exposures

Amount payable to Government is calculated by computing 5% of your sales less 5% of your Purchases

Deadline for (filling) VAT to Govt is 21st day of new month

Failure to file before deadline date is N5,000.00 per month but on Compounding basis

Only 4 industries are exempted from paying and receiving VAT (Medicals,
Educational, Agricultural and Dealers in Baby clothing and Food)

You are yet to escape unpaid VAT for the last 6 years

You constantly need to work with your Consultant to ensure full VAT and other Taxes compliance.