MTN, Airtel and deposit money banks in Nigeria have been appointed by the Federal Inland Revenue Service to withhold or collect the value added tax charged on all taxable supplies made to them and remit same to the agency.
This is contained in a public notice issued by the FIRS on November 1, signed by its Executive Chairman, Muhammad Nami, where it explained the role of the companies as well as the obligations of their suppliers with regard to the withholding of the VAT.
“This Notice is given to all persons carrying on trade, profession or business of any kind, tax practitioners and the general public that, with effect from 1st January, 2023; in line with the provisions of Section 14(3) of the Value Added Tax Act Cap. V1 LFN 2004 (as amended), the following companies are appointed to withhold or collect VAT charged on all taxable supplies made to them: MTN; Airtel; and all money deposit banks—as defined by the CBN Guidelines,” the agency said in a statement released by the Special Assistant to the Executive Chairman on Media and Communications, Oluwatobi Wojuola, on Monday.
The FIRS noted that the companies must remit the tax withheld or collected in the currency of transaction to it on or before the 21st day of the month immediately.
“The tax withheld or collected under this notice shall be remitted in the format prescribed by the Service but separately from VAT due on the companies’ taxable supplies.”
The notice further explained the options that were available to suppliers of these companies whose output tax would be withheld.
“A supplier whose output tax is withheld, as provided in this notice, may deduct the input tax paid on the goods purchased or imported to make the taxable supply from the output tax collected on other taxable supplies.”
