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Remit VAT to FIRS, CITN Advises Tax Professionals

Remit VAT to FIRS, CITN Advises Tax Professionals

The Chartered Institute of Taxation (CITN) has directed its members to remit Value Added Tax (VAT) to Federal Inland Revenue Service (FIRS) pending the outcome of the appeal filed by the agency in the court of appeal.

The Institute, in a letter dated September 10, 2021, said this is the best approach in view of the ruling the Court of Appeal in Abuja that the status quo should be maintained on the imposition and collection of VAT in Rivers and Lagos States.

The letter is entitled ‘Advice on the legal Tango on Value Added Tax’ and signed by the Registrar/Chief Executive, CITN, Adefisayo Awogbade.

The institute noted that many tax professionals have been thrown into confusion on which authority to make remittances to.

READ ALSO: VAT Collection: Peter Obi Urges States To Develop Revenue Generating Capacity

The letter read, “The institute has taken cognisance of the order of the court of Appeal sitting in Abuja, made on Friday, 10th September, 2021 to the effect that the status quo on imposition and collection of Value Added Tax in Rivers State and Lagos State be maintained pending the determination of the substantive appeal by FIRS in this regard.

“Today’s ruling of the Court of Appeal has removed the dilemma facing tax professionals and their clients on which authority to make remittances to. We advise, therefore, that our members should ensure that their clients should continue to make remittances to FIRS pending when the Court of Appeal reached a different decision.”

CITN promised to monitor developments as they unfold and inform its members of changes that may arise in respect of VAT remittance.

Following a ruling by the Federal High Court in Port Harcourt in August, which held that the Rivers State Government had the powers to collect VAT within its territory, Lagos, Akwa Ibom and Rivers State governments have enacted their VAT law.

It was learned that stripping the FIRS of the power to collect VAT would reduce the revenue the agency will be receiving.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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