Nigeria’s Finance Bill for 2019 signed into law

• an increase in the value-added tax (“VAT”) rate from 5% to 7.5%, effective from 1 February 2020;
• VAT registration threshold of NGN25-million turnover;
• “place of supply” rules for services, and deeming any service supplied to a Nigerian-based customer and enjoyed in Nigeria to be VATable in Nigeria;
• defining zero-rated “exported services” for VAT purposes as a service rendered within or outside Nigeria by a person resident in Nigeria to a non-resident person outside of Nigeria, in line with the destination principle;
• and introducing a requirement for a customer to self-account for VAT where the supplier or VATable goods or services failed to charge VAT.

Source: ensafrica.com

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