Value Added Tax (VAT) is a consumption tax payable on goods and services in Nigeria except those specifically exempted by the VAT Act. The Finance Act 2019 amended the VAT Act by increasing the current VAT rate to 7.5% from the 5% stated in the VAT Act, as amended in 2007. By virtue of Section 7 of the VAT Act, the administration of VAT is vested in the Federal Board of inland Revenue, now the Federal Inland Revenue Service (FIRS), which acts as a Federal Tax Agency.
When you eventually decide to register a business for that brilliant idea, one of the first questions likely to pop up in your mind is “how do I really get started?” In getting started, you are likely to wonder how to package the venture so that it wins the acceptance of relevant stakeholders.
Nigeria was ranked 169th out of 190 countries in the World Bank Ease of Doing Business Report released recently. Obviously dissatisfied with its position on the index, the Nigerian government triggered a flurry of activities aimed at ensuring that the country moves up in the ranking.