New Tax Law Boosts State Revenue, Alters VAT Distribution, and Enhances Financial Compliance

States will receive 55% of VAT revenue, up from 50%, while the Federal Government’s share decreases from 15% to 10%. Local governments maintain a 35% share. The new VAT distribution formula allocates 50% equally among states and LGAs, 20% based on population, and 30% on consumption. Financial institutions must report high-value transactions quarterly. VAT refunds are to be deducted before revenue sharing, with dedicated Tax Refund Accounts established. The Nigeria Revenue Service will replace the Federal Inland Revenue Service and launch a National Single Window Portal for trade operations.

Source: thenationonlineng.net

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.

---

---