The Digest:
Nigeria has successfully collected over N600bn in Value Added Tax (VAT) from global digital service providers like Facebook, Amazon, and Netflix. This move follows the amendment of the VAT Act, which brings non-resident companies into Nigeria’s tax network.
Key Points:
- Nigeria collects VAT from companies like Facebook, Amazon, and Netflix.
- VAT reforms include a focus on services consumed locally but delivered globally.
- The Federal Inland Revenue Service (FIRS) is tasked with collection.
- President Tinubu’s tax reforms focus on fairness and equity for all Nigerians.
- The reforms aim to address low tax-to-GDP ratio and improve compliance.
- No new taxes have been introduced under the ongoing fiscal reforms.
- Personal income tax and corporate tax thresholds have been adjusted for fairness.
Summary: The VAT collection from international tech giants showcases Nigeria’s push for tax fairness and an expanded revenue base. By capturing taxes from global services, the country seeks to boost its fiscal stability and avoid further economic collapse.
Rooted in Reforms.
Sources: Punch, Channels TV, Premium Times
