The most effective method to REGISTER FOR VAT IN NIGERIA

Posted at 19:13h in How-To-Guides by Admin 0 Comments

WHAT IS VAT?

Esteem Added Tax (VAT) is an assessment forced on the supply of merchandise and enterprises. Under Nigerian law, the duty is charged at 5% of the estimation of the assessable products and enterprises.

A delineation of this is whether you offer shoes for N10, 000, the VAT chargeable on that is 5% of the esteem – N500, the business is accordingly expected to pitch the shoes to individuals from people in general for N10, 500. The organization holds N10, 000 and afterward dispatches the N500 to the FIRS.

WHO NEEDS TO REGISTER FOR VAT?

By excellence of Section 8 of the Value Added Tax Act, each business must enroll for VAT with the FIRS inside a half year of initiation of business. Be that as it may, certain merchandise and enterprises are absolved, they include:

All restorative and pharmaceutical items

Essential nourishment things

Books and instructive materials

Child items

Manure, privately created horticultural and veterinary prescription, cultivating hardware and cultivating transportation gear

All fares

Plant and apparatus imported for use in Export Processing zone or facilitated commerce zone

Plant, apparatus and gear acquired for usage of gas in downstream oil tasks

Tractors, furrows and farming gear and executes acquired for horticultural reason

Medicinal administrations

Administrations rendered by group banks, individuals’ bank and home loan establishments

Plays and exhibitions led by instructive establishments as a feature of learning

HOW DO YOU APPLY?

To apply for VAT, you should go to the Federal Inland Revenue Service (FIRS) office that is nearest to your enrolled address. You can discover the areas on the FIRS site with the accompanying records:

Authentication of Incorporation: CAC2, CAC7

Appropriately filled and formally stamped VAT shape 001

Service charge

Application letter on organization letter headed paper

On the off chance that your business is an enlisted business name, and not a constrained obligation organization then the main reports which you should give are:

Business Name Registration Certificate

Properly filled and formally stamped VAT frame 001

Service charge

Application letter on business letter headed paper

You should take the first duplicate and 2 photocopies of each record. The firsts are required for locating just, 1 duplicate will be left with the FIRS, and 1 duplicate will be stamped and marked by a FIRS official as proof that you have made an application.