- VAT in Nigeria mainly applies to luxury services, not everyday essentials, which are largely exempt (e.g., basic food, baby foods, medical products, educational materials).
- VAT is collected by registered businesses and was increased from 5% to 7.5% under President Buhari.
- The revenue sharing formula was reformed: federal government now gets 10%, states 55%, and local governments 35%.
- No new VAT was introduced on mobile transfer fees; enforcement and compliance were only emphasized.
- Small businesses with annual revenue below N100 million and most basic items are exempt from VAT; only luxury services and some transaction fees attract VAT.
Source: dailypost.ng
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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