- The Nigerian Federal Inland Revenue Service (FIRS) has indefinitely postponed the implementation of guidelines to simplify compliance for goods sold through digital means.
- The guidelines were originally scheduled to become effective from 1 January 2024.
- The postponement is to allow the FIRS to finalize a seamless process for value added tax (VAT) compliance.
- The postponement only applies to goods sold through digital means, not digital services.
- Nonresident vendors selling goods via digital means to customers in Nigeria are required to register for VAT if they meet an annual sales threshold of $25,000.
- Goods sold via digital means are considered sold in Nigeria if they are physically present, imported, assembled, or installed in Nigeria, or if the beneficial owner of the rights is a taxpayer in Nigeria.
- The guidelines do not define a low-value goods threshold, so it is unclear if the postponement applies to specific goods or all goods sold through digital means.
- Further guidance is expected from the FIRS regarding the interaction between the postponement and the current customs clearance procedure for imported goods.
Source: kpmg.com
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.
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