The Federal Inland Revenue Service (FIRS) has made an official announcement regarding its upcoming nationwide Value Added Tax (VAT) and Withholding Tax (WHT) compliance monitoring exercise.
FIRS Executive Chairman, Zacch Adedeji, revealed this information in a statement released on Monday, indicating that the exercise will commence on Monday, October 23.
Adedeji emphasized that the primary objective of this exercise is to ensure that taxpayers fulfill their tax obligations by remitting the accurate amount of VAT and WHT to the government.
In accordance with Sections 2, 8, 26, and 29 of the Federal Inland Revenue Service (Establishment) Act 2007 (as amended), all taxable persons or tax agents, including Non-Governmental Organizations (NGOs), Ministries, Departments, and Agencies (MDAs) at the Federal, State, and Local levels, are hereby notified of this exercise.
A dedicated team of officers from the service will visit selected taxpayers and taxable persons, such as companies, NGOs, or MDAs, to review their VAT and WHT records.
Adedeji clarified that the exercise will cover the accounting years from 2019 to 2022 for taxable persons whose records have been audited by the Service up to the 2018 accounting year.
Furthermore, taxpayers whose records have been audited by the service up to the 2018 accounting year will be included in the exercise, while those whose records have not been audited up to 2018 will have their previous years that haven’t undergone tax auditing included in the exercise.
“All taxable persons or tax agents who have made deductions of VAT or WHT on behalf of the Service are required to promptly remit all such deductions to the FIRS within two weeks of this publication,” stated the FIRS Chairman.
The FIRS will notify taxable persons or tax agents selected for the VAT and WHT compliance monitoring exercise, providing them with a list of necessary documents required for the exercise.