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.
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
