The Federal Inland Revenue Service (FIRS) has designated MTN, Airtel, and money deposit institutions in Nigeria to withhold Value Added Tax (VAT) levied on all taxable supplies made to them and remit to the Service.
This information can be found in a public notice that the FIRS published on November 7 and was signed by Muhammad Nami, its Executive Chairman. The notice outlined the requirements of both businesses and their suppliers with relation to the withholding of value-added tax.
“This Notice is given to all persons carrying on trade, profession or business of any kind, tax practitioners and the general public that, with effect from 1st January, 2023; in line with the provisions of Section 14(3) of the Value Added Tax Act Cap. V1 LFN 2004 (as amended), the following companies are appointed to withhold or collect VAT charged on all taxable supplies made to them: MTN; Airtel; and all money deposit banks—as defined by the CBN Guidelines.”
The FIRS noted that these companies were expected to remit the tax they would withhold on or before the 21st day of the month immediately following the month the tax was withheld, in the format prescribed by the Service.
“The companies shall remit the tax withheld or collected, in the currency of transaction, to the Service on or before the 21st day of the month immediately following the month the tax was withheld or collected;
“The tax withheld or collected under this notice shall be remitted in the format prescribed by the Service but separately from VAT due on the companies’ taxable supplies.”