- Nigeria is shifting from retrospective audits to real-time reporting for VAT and WHT compliance, giving tax authorities immediate visibility into business transactions.
- This “fiscalisation” approach aims to close reporting gaps, especially in the informal economy, and ties tax outcomes directly to the quality of transaction data.
- The new system reduces discretionary assessments and post-hoc reconciliations, embedding compliance into business processes.
- Early implementation has revealed challenges with data integrity and onboarding, particularly due to outdated taxpayer information and sector-specific business models.
- The rollout is phased, starting with large taxpayers, and is expected to fundamentally change how companies manage tax exposure.
Source: businessday.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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