FIRS To Commence VAT, WAT Compliance Exercise From July 1

FIRS To Commence VAT, WAT Compliance Exercise From July 1

The Federal Inland Revenue Service (FIRS) said it will embark on a nationwide Value-Added Tax (VAT) and Withholding Tax (WHT) compliance monitoring exercise for all taxable Nigerians from July 1, 2022.

This was announced by the Executive Chairman, Muhammad on Thursday via FIRS’ offical Twitter handle.

Withholding Tax (WHT) is a method used to collect income tax in advance.

Nami said the exercise would make up for 2016 to 2020 accounting years.

The exercise would also be expanded to include preceding years for taxpayers whose records have not been audited by the service up to 2015.

He said teams of officers from the service would visit selected taxpayers, taxable persons including companies, NGOs or MDAS, to review their records.

“The Federal Inland Revenue Service (FIRS) shall embark on a nationwide VAT and WHT compliance monitoring exercise with effect from July 1, 2022,” the statement reads.

“The exercise shall cover 2016 to 2020 accounting years for taxable persons whose records have been audited by the service up to 2015 accounting year. However, for taxpayers whose records have not been audited by the Service up to 2015, the exercise shall be extended to include the prior years that have not been tax audited.

“All taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the service are required to immediately remit all such deductions to the FIRS within two weeks of this publication.

“Taxable persons or tax agents who shall be visited for the VAT and WHT compliance monitoring exercise will be notified by the FIRS and the documents required for the exercise will be listed in the letter to selected entities. For more enquiries, contact: nationaltaxcompliance2021@firs.gov.ng.”

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