The Federal Inland Revenue Service (FIRS) says it will from July 1, embark on a nationwide Value Added Tax (VAT) and Withholding Tax (WHT) compliance exercise.
A public notice by the service explained that during the exercise teams of FIRS officers are will companies, Non-Government Organisations, as well as Ministries Departments, and Agencies “to review their VAT and WHT records.”
Specifically, according to the notice signed by the FIRS Executive Chairman, Muhammad Nami, the exercise which followed an earlier notice by the service to commence the enforcement and recovery of unremitted tax deductions owed the Federation by some states and local governments.
The FIRS teams, during such visits, are expected to review the VAT and withholding Tax records of selected taxpayers and taxable persons for the period between the 2016 and 2020 accounting years for those whose records have been audited by the Service up to the 2015 accounting year.
However, he stressed that for taxpayers whose records have not been audited by the Service up to 2015, the exercise will be extended to include the prior years that have not been tax audited.
The Service, therefore, called on “all taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the Service are required to immediately remit all such deductions to the FIRS within two weeks of this publication.”
The notice assured that those to be visited during the monitoring exercise will be notified of the required documents for review beforehand.