FEDERAL INLAND REVENUE SERVICE ANNOUNCES POSTPONEMENT OF VAT SIMPLIFIED COMPLIANCE REGIME FOR NON-RESIDENT SUPPLIERS

The Federal Inland Revenue Service (FIRS) has issued a public notice regarding the postponement of the implementation of the Guidelines on the Value-Added Tax (VAT) Simplified Compliance Regime for non-resident suppliers using digital platforms to supply low-value goods to Nigeria.

In a statement released from its headquarters at 15 Sokode Crescent, Wuse Zone 5, Abuja, FIRS informed the general public, tax practitioners, and non-resident suppliers of goods operating through e-commerce or digital means that:

  1. The previously scheduled commencement date of 1st January 2024 for the implementation of the VAT Simplified Compliance Regime has been postponed.
  2. This postponement is a result of FIRS’s commitment to ensuring a seamless and effective process for the collection and remittance of taxes from non-resident suppliers using digital platforms. The Service is actively engaged in the development of a robust system to enhance efficiency.
  3. FIRS reassures stakeholders that it will continue to collaborate with them to facilitate the smooth development and eventual implementation of the Guidelines for goods supplied to Nigeria through digital platforms by non-resident suppliers.
  4. It is important to note that the implementation of the Guidelines on the supply of services and intangibles by non-residents, which commenced on 1st January 2022, remains unaffected by this notice. Therefore, non-resident suppliers of services and intangibles are urged to adhere to the provisions of the Guidelines regarding the collection and remittance of taxes as stipulated.

The FIRS encourages all concerned parties to stay informed and anticipates a timely and effective rollout of the Guidelines once the development process is successfully concluded.