. The target of VAT is consumption of goods and services and unless an item is specifically exempted by law, the consumer is liable to the tax.
Nami explained that the 28,000 filing recorded in July exclude those by companies and organisations dealing on basic food items, baby products, books and educational materials, newspapers and magazines, medical and pharmaceutical products plus services among others which are exempts from VAT payment.
The FIRS Executive Chairman stated that in 2019, the FIRS as part of the deliberate design of the Federal Government to encourage the growth of small and medium enterprises came up with a law that exempted companies with an annual turnover of N25 million and below from paying VAT. The intention was that since VAT is a progressive tax, it is imperative to give the smaller companies an opportunity to grow before requiring them to pay VAT.
Since the introduction of the TaxPro Max system, the Nami-led FIRS leadership has been carrying out a series of enlightenment of the public on the process and the increased data requirements to file a complete VAT return.