- Value-added tax (VAT) in Nigeria increased from N709.59 billion in Q1 to N781.35 billion in Q2.
- VAT is a consumption tax paid by the final consumer when purchasing goods and services.
- The federal government aims to generate N10.49 trillion in revenue from VAT in its 2023 budget.
- VAT is charged at a rate of 7.5% according to the Federal Inland Revenue Service.
- Local payments contributed N512.03 billion to VAT, foreign payments contributed N142.63 billion, and import VAT contributed N126.69 billion.
- Extraterritorial organizations and bodies had the highest growth rate in VAT, followed by real estate.
- Households as employers and undifferentiated goods
- and services-producing activities of households for own use had the lowest growth rate.
- Manufacturing, information and communication, and financial and insurance activities were the top three contributors to VAT.
Source: icirnigeria.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
