The Federal Inland Revenue Service, FIRS, has said it would embark on a nationwide monitoring of Value Added Tax, VAT, and Withholding Tax, WHT, compliance exercise from July, 2022.
FIRS Executive Chairman, Muhammad Nami, disclosed this in a public notice announcing the compliance monitoring exercise.
The exercise is coming on the heels of an earlier notice by the service to commence the enforcement and recovery of unremitted tax deductions owed the federation by some states and local governments.
According to the service, the VAT and withholding tax compliance monitoring exercise will involve teams of FIRS officers visiting selected taxpayers and taxable persons to review their VAT and withholding tax records, in
“The Federal Inland Revenue Service, FIRS, shall embark on a nationwide VAT and WHT compliance monitoring exercise with effect from July 1, 2022,” the notice reads.
“As a result, teams of officers from the Service shall visit selected taxpayers, taxable persons (including companies, NGOs or MDAs) to review their VAT and WHT records,” Nami said.
The FIRS chairman also said the exercise will cover 2016 to 2020 accounting years for taxable persons whose records have been audited by the service up to 2015 accounting year.
Nami however noted that for taxpayers whose records have not been audited by the Service up to 2015, the exercise will be extended to include the prior years that have not been tax audited.
He called on all taxable persons and tax agents to immediately remit deductions of VAT and withholding tax they have made on its behalf.
“All taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the Service are required to immediately remit all such deductions to the FIRS within two weeks of this publication,” he said.
The notice further clarified that those to be visited during the monitoring exercise would be notified about the required documents for review beforehand.