Nigerians To Pay More On Int’l e-commerce as FG Introduces 6% Tax – PwC
Nigerians To Pay More On Int’l e-commerce as FG Introduces 6% Tax – PwC
Fiscal Policy Partner and Africa Tax Leader, Taiwo Oyedele, of PwC has revealed that Nigerians who visit Amazon, and other e-commerce platforms not resident in Nigeria will pay Value Added Tax (VAT) on items purchased online.Information Guide Nigeria
Oyedele said that this is as a result of the introduction of the 6% tax on digital services offered to Nigerians by non-resident companies.
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaTaiwo Oyedele said this at the Nigerian Economic Outlook 2022 organised by the King’s Court Parish of the Redeemed Christian Church of God (RCCG), in a webinar themed, “The Finance Act for 2022 – Nigeria Fiscal Guide.”
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According to him, though it will increase government revenue, it will also have an implication on the transfer of costs to customers.
The taxation of the digital economy experienced some modification in the 2021 Finance Act which requires that companies restrict VAT obligations mainly to Digital Non-Resident Companies (who supply individuals who cannot self-account for VAT).
According to Oyedele, the changes made to the 2021 Finance Act empower Federal Inland Revenue Services (FIRS) to assess non-resident firms to tax on fair and reasonable turnover tax basis on turnover earned from providing digital services to Nigerian customers.
Oyedele stated that the FIRS has been empowered under the Finance Act 2021 to tax NRCs with digital significant economic presence in Nigeria.
These include “electronic commerce, application stores, online payments, electronic data storage, online adverts, data transmission to recipients in Nigeria to tax on a fair and reasonable percentage of turnover derived from Nigeria.”Jamb Result
According to BLUEPRINT, this means that Non-resident digital companies are now required to charge, collect and remit VAT to FIRS.
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