The Federal Inland Revenue Service (FIRS) says it will begin to impose Value Added Tax (VAT) on online transactions, both domestic and international, with effective from January 2020.
The Executive Chairman of FIRS, Mr Tunde Fowler, disclosed this at the African Tax Administration Forum (ATAF) Technical Workshop on VAT on Monday in Abuja.
Fowler said that a lot of countries in the world had identified Nigeria as a good market and many of them were into online businesses, adding that there was the need to tap the potentials to generate more revenue for the country.
He however, said that that the date of commencement of the VAT on online transactions would be subject to government’s approval.
Fowler charged participants at the workshop to find answers to the questions and address the gaps in some countries to improve VAT collection.
The Executive Secretary of ATAF, Mr Logan Wort, said that the establishment of the ATAF VAT Technical Committee in 2017 had given rise to various debates aimed at giving better policy options for countries.
Wort explained that this would enable member-states to share ideas and techniques on how best to administer, design and audit VAT.
He said that the establishment of the committee was a way of practically addressing some issues that were becoming common phenomena across the continent.