Federal Government issues Official Gazette on VAT (Modification Order), 2020

Official Gazette -VAT Modification Order, 2020

The Federal Government of Nigeria has published the Value Added Tax (Modification Order), 2020 (“the Order”) in its Official Gazette No. 18, Vol.107 of 4 February 2020.

Wole Obayomi

Partner & Head, Tax, Regulatory & People Services

KPMG in Nigeria


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The Order commenced on 3 February 2020 and was signed by the Honourable Minister of Finance, Budget and National Planning (HMoF), Mrs. Zainab Shamsuna Ahmed, pursuant to her powers under Section 38 of the Value Added Tax (VAT) Act, Cap. V1, Laws of the Federation of Nigeria, 2004 (as amended).

The Order modifies the First Schedule to the VAT Act by defining and expanding the list of goods and services exempted from VAT and providing clarity on the interpretation of the VAT Act as amended by Finance Act, 2019.

Highlights of the Order include:

  1. Adoption of “basic food items” as described in the
    Finance Act, 2019 but excluding such items sold at
    restaurants, hotels, eateries, lounges and other similar
    premises. The Order further provides that basic food
    items sold by contractors, caterers and other similar
    vendors will not qualify for the exemption.

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