Nigeria: Uncertainty about effective date of VAT rate increase
Nigeria: Effective date of VAT rate increase
The rate of value added tax (VAT) in Nigeria increased from 5% to 7.5%.
The Finance Act, 2019, signed by the president and effective on 13 January 2020, included the VAT rate change. However, the Finance Minister previously announced that the effective date for enforcement of the VAT rate change would be 1 February 2020.
Accordingly, there is an issue as to whether the 7.5% rate of VAT is effective 13 January 2020—pending guidance from the Federal Inland Revenue Service to clarify the effective date of the VAT rate increase.
Read a February 2020 report [PDF 125 KB] prepared by the KPMG member firm in Nigeria
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