Concept Of Vat On Imported Services - 1819 Words

Concept of VAT on Imported Services in Nigeria Introduction: Value Added Tax (VAT) is a consumption tax payable on the goods and service consumed by any person, whether government agencies, business organizations or individuals. It is a consumption tax on economic operations including imports which in this context means goods and services brought form abroad into Nigeria. The target of VAT is consumption of goods and services and unless an item is specifically exempted under the VAT Act, Cap. V1, Laws of the Federation of Nigeria, 2004 (as amended by the VAT (Amendment) Act, 2007), the consumer is liable to the tax at the rate of 5%. Definitions: According to the FIRS information circular no. 9305 dated 5th November, 1993, â€Å"Nigeria†, for†¦show more content†¦Matters Arising: At different points in time in Nigeria, various issues have surrounded VAT administration since the enactment of the Value Added Tax Act, 1993 (later referred to as the â€Å"Act†) and the subsequent Value Added Tax (Amendment) Act, 2007, especially in relation to whether services rendered by a Non-Resident Company (NRC) to a Nigerian company are subject to VAT. This issue became pronounced in 2015 and 2016 when the Tax Appeal Tribunal (TAT), sitting in Abuja and Lagos handed down two conflicting decisions in Gazprom Oil Gas v FIRS (Gazprom) and Vodacom Business Nigeria Limited v FIRS (Vodacom) respectively Facts for consideration. Early in the year 2016, the Tax Appeal Tribunal sitting in Lagos gave his judgment in Vodacom v FIRS case. In this case, New Skies Satellites, a non-Nigerian company based in the Netherlands, entered into a contract for the supply of bandwidth capacities with Vodacom for its use in Nigeria. The Federal Inland Revenue Service (FIRS) assessed the transaction to VAT and issued a re-assessment notice based on the reverse charge mechanism- a system where persons subject to pay VAT are required to self-charge and remit to the FIRS in the event that the entity that rendered the relevant services failed to include VAT in the invoice it presented to the customer. Vodacom filed an appeal at the TAT challenging the re-assessment notice issued by FIRS1. InShow MoreRelatedAccounting Aspect of Value Added Tax in Bangladesh1634 Words   |  7 Pagesunderstand : âž ¢ The concept of Value added tax âž ¢ Characteristics of Vat âž ¢ Advantages and disadvantages of vat âž ¢ Contribution of Vat in Bangladesh âž ¢ some Important features of Vat in Bangladesh âž ¢ Charge of Value added Tax âž ¢ Who will pay the Vat ? âž ¢ Exemption from Vat âž ¢ Registration of Vat âž ¢ Offence and Penalties âž ¢ Accounting treatment at vat âž ¢ Vat authorities Accounting Treatment of VAT 1. Journal Entries for VAT Account : 1. When assetsRead MoreValue Added Tax And Implementing China Essay2371 Words   |  10 PagesUnited States now applied VAT. According to the research by OECD committee, consumption tax was a large source of tax revenues, and â€Å"the VAT accounted on average for 6.6% of GDP and 19.5% in total tax revenues in OECD countries in 2012,† which was the largest proportion (â€Å"Consumption tax trends 2014†). To become familiar with the performance and importance of the VAT, leaning the meaning and implementation of VAT in a specific country would be a effective way to know why VAT developed rapidly in theRead MoreEssay On Gst1329 Words   |  6 PagesGOODS AND SERVICES TAX IN INDIA (GST) – AN INSIGHT Abstract: India’s major tax reform is now realism. A comprehensive dual Goods and Services Tax (GST) has replaced the complex multiple indirect tax structure from 1st July 2017. Internationally, GST was first introduced in France and now more than 160 countries have further implemented GST/VAT in some form or other. In some countries, VAT is the substitute for GST, but conceptually it is a destination based tax levied on consumption of goods andRead MoreGrowing Up From An Economic Recession874 Words   |  4 Pagesvarious segments of the new tax policy. This policy mandates the government to impose taxes on consumer goods and services at all stages of production and distribution. Businesses can pass along a sizable percentage of the cost associated with the tax increase, which will subsequently form part of the final price consumers pay for both locally manufactured or imported goods and services. Debates on the policy started with very disturbing but somewhat interesting views being expressed by politicalRead MoreEssay about India and the Black Market4264 Words   |  18 Pagesfor making and receiving payments has reached a point that for buying even one small ball pen payment is made through credit / debit card. Similarly, payments for the sale and purchase of immovable property, various kinds of consumer goods and services beyond a certain stipulated amount should also be made mandatory through banking channels. While doing so, the Finance Minister will not only be plugging one of the biggest loopholes leading to tax evasion but would also reduce the need for readyRead MoreDeveloping an Effective and Efficient Tax System in a Developing Economy - a Case Study of Ghana29843 Words   |  120 Pages |45-46 | | 2.4.2 | |Government development agenda |46-55 | |2.5 | |The concept of change management |55 | | 2.5.1 | |The nature of organisational change |55 | | 2Read MoreFigaro Coffee5549 Words   |  23 Pages Figaro  -  Head  Office 5 Pine Street Corner Sheridan Street, Mandaluyong City02 637 5969 | Corporate Vision * We will be the preferred brand of specialty coffee of the international business traveler. Our products and unique style of service will leave a lasting impression among our customers. * We will be the investment of choice in the countries where our brand is represented thereby providing attractive returns to all our shareholders. * We will be a model employer thatRead MoreThe Cultural Challenges Of Doing Business Overseas Essays1983 Words   |  8 PagesThe major difference in Czech culture is that the family is the center of the social structure and the obligation to the family is one’s first priority. The Czech people are polite and reserved until a personal relationship is built. Some of their concepts include a logical, practical and efficient way of forward thinking to provide a sense of security through careful planning, in both business and personal life (commuicaid, 2007). The etiquettes and customs of Czech should be learned, because it isRead MorePaint Industry Analysis2202 Words   |  9 PagesMarch. Volumes get doubled compared to an average month. Industry is growing in-line with the GDP growth rate unless special developments occur (eg: construction boom). Average price level has shown a 8%-10% year on year growth. 99% dependence on imported raw materials. 2 Industry Overview In 2007, 41 establishments # 1343 persons involved in the industry # Only 5 establishments had more that 25 employees generated an output of Rs. 7,092,199,787 # 0.35 % of total manufacturing sector output (RsRead MoreZimbabwe Taxation2625 Words   |  11 Pageswhite minority as they raised money, enhanced their economy’s liquidity (cash wise, thus supporting the currency), facilitating further development of the white minority. The whole purpose of a tax system to benefit the people at large through the services provided by the government was rather defeated as the greater proportion of tax was paid by the black majority for the benefit of the white minority. Poll tax was also another type of tax introduced by the colonial authorities again aimed at the