FIRS Sets Deadline For VAT Remittance
The Federal Inland Revenue Service has said all companies must remit value-added tax and withholding tax by the 21st day of every month.
It disclosed this in a public notice on Wednesday signed by its Chairman, Mr Babatunde Fowler, noting that some companies had been found not to deduct these taxes at source.
The agency stated that it had come to its notice that some companies did not deduct VAT/ WHT from the compensation paid to their distributors, contrary to the provisions of the ‘Companies Income Tax.
It noted that following this discovery, the FIRS had thus put all companies, particularly those in the fast-moving consumer goods sector on notice that compensation due to their distributors and customers in the form of commission and rebate, and by whatever means of payments, whether by cash, credit note or even goods-in-trade must be subjected to VAT/ WHT at the appropriate rate as applicable.
It directed the companies to remit the same to the FIRS accordingly on or before the 21st of every month.