The VAT Withholding Guidelines aimed at providing clarity on the provisions of the VAT Act regarding the operation of the VAT withholding regime in Nigeria. According to the VAT Withholding Guidelines, oil and gas companies, all government ministries, departments and agencies; Nigerian deposit money banks; telecommunication companies (currently limited to MTN and Airtel); and any other companies the FIRS may designate in writing from time to time must withhold VAT charged on invoices of all taxable supplies it receives and maintain a “VAT Withheld Account” separate from its typical VAT Account. The company will remit the VAT withheld from such taxable supplies to the FIRS. This obligation is in addition to the eligible company’s obligation to collect and remit VAT on its taxable supplies to its customers.
Source: mondaq.com
