The Executive Chairman of the Federal Inland Revenue Service (FIRS) Muhammad Nami has said that the service will embark on a nationwide Value-Added Tax (VAT) and Withholding Tax (WHT) compliance monitoring exercise.
This is contained in a circular posted on Thursday on FIRS Twitter page.
The message said “Notice to all taxable persons or tax agents including NGOs, MDA’s of govt’s at Fed., State & Local levels: The FIRS shall embark on nationwide VAT & WHT Compliance monitoring exercise, from July 1, 2022”
It said “Pursuant to Sections 2, 8, 26 and 29 of the Federal Inland Revenue Service (Establishment) Act 2007 (as amended), notice is hereby given to all taxable persons or tax agents including Non-Governmental Organisations (NGOs), Ministries, Departments and Agencies (MDAs) of governments at the Federal, State and Local levels that:
1. The Federal Inland Revenue Service (FIRS) shall embark on a nationwide VAT and WHT Compliance monitoring exercise with effect from July 1, 2022.
2. As a result, teams of officers from the Service shall visit selected taxpayers, taxable persons (including companies, NGOs or MDAs) to review their VAT and WHT records.
3. 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.
4. 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.
5. 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: [email protected].”
