VAT PENALTY IN NIGERIA
WHAT IS VAT?
VAT is a tax on value added on goods and services.
The value added on a product is the output value minus the input cost.
Value added tax has been successful in many countries.
It has been challenging especially in the area of international online business.
Recently some countries has asked online vendors to register for VAT in the country of buyer.
The value added on a product is the output value minus the input cost.
Value added tax has been successful in many countries.
It has been challenging especially in the area of international online business.
Recently some countries has asked online vendors to register for VAT in the country of buyer.
Below are some VAT penalties in Nigeria.
- FAILURE TO REGISTER FOR VAT
According to VAT Act 1993 as amended
1.A taxable person shall, within six months of the commencement of the Act, or six months of the commencement of business, whichever is earlier register with Firs
2.A taxable person who fails or refuses to register within the specified period shall be liable to N10,000 for the first month and N5,000 for each of the subsequent month in which the failure occur.
- FAILURE TO REMIT TAX.
1 . Failure to remit tax within the specified periods-a sum equal to 5 per cent plus interest at the commercial rate of the amount of tax remit table plus tax payable.
- CHANGE OF ADDRESS.
Failure to notify FIRS on the change of address within one month of the change, is liable to pay a penalty of N5,000.
- FAILURE TO ISSUE A TAX INVOICE FOR GOODS OR SERVICES
Guilty of an offence and liable on conviction to a fine of 50 per cent of the cost of goods or services for which the invoice was not issued.
- FAILURE TO KEEP PROPER RECORDS AND ACCOUNTS.
-2,000 for every month it continues.
- FAILURE TO COLLECT TAX.
Penalty of 150 per cent of the amount not collected, plus 5 per cent interest above CBN rediscount rate.
- FAILURE TO SUBMIT RETURNS.
N5,000 for every month in which the failure occur.
- PENALTY CONTINUES -see VAT ACT 1993 as amended till date.
Disclaimer: Obi azubuike is not by this publication acting as a professional advisers and therefore not liable to any damage whatsoever for your acting or refraining to act based on this publication. Consult your professional for advice.
copyright(c)2014-Obi Azubuike.