FIRS Shifts Implementation of VAT Filing Procedures for Non-Resident Suppliers

By Modupe Gbadeyanka

The implementation of the guidelines on simplified compliance regime on Value Added Tax (VAT) for non-resident suppliers of goods to Nigeria through digital platforms has been postponed by the Federal Inland Revenue Service (FIRS).

This shift in the implementation was confirmed in a statement signed by the Executive Chairman of the FIRS, Mr Zacch Adedeji.

The implementation of VAT filing procedures for non-resident suppliers was earlier scheduled to commence on Monday, January 1, 2024, but the FIRS explained that it suspended it because it needed to put the finishing touches to the platform for seamless operations.

Business Post recalls that on January 1, 2022, the agency kicked off the implementation of the guidelines on the supplier of services and intangibles by non-residents, resulting in social media platforms like Facebook and others charging VAT for adverts on their websites.

In the statement issued by the FIRS on Monday, it was emphasised that the collection of VAT by suppliers of services and intangibles continues, as this new notice does not affect it.

“The Federal Inland Revenue Service (FIRS) wishes to notify the general public, tax practitioners and all non-resident suppliers of goods in Nigeria through e-commerce and digital means that

“The implementation of the guidelines on simplified compliance regime on Value Added Tax (VAT for non-resident suppliers of goods to Nigeria through digital platforms, scheduled to commence from January 1, 2024, has been postponed.

“This postponement is to allow the service to conclude the development of a seamless process for the effective and efficient process of the collection and remittance of the tax

“The service shall continue to engage with stakeholders to ensure seamless and effective development and implementation of the guidelines on goods supplied to Nigeria, through digital platforms, by non-resident suppliers in due course.

“The implementation of the guidelines on the supply of services and intangibles by non-residents commenced on January 1, 2022, and is not affected by this notice.

“Consequently, all non-resident suppliers of services and intangibles should continue to comply with the provisions of the guidelines concerning the collection and remittance of the tax as and when due,” it stated.