FIRS Designates Telecom and Banks as VAT Withholding Agents.

In a Public Notice titled ‘Value Added Tax Act (CAP V1, LFN 2004) (as amended): Appointment of Certain Companies to Withhold VAT,’ the Federal Inland Revenue Service (FIRS) has officially designated MTN, Airtel, and all Deposit Money Banks (as defined by CBN Guidelines) as appointed agents responsible for withholding Value Added Tax (VAT) on taxable supplies made to them, effective from January 1, 2023. The appointed entities are mandated to remit the withheld VAT in the currency of the transaction to the FIRS on or before the 21st day of the month following the month in which the taxes were withheld. It is important to emphasize that the filing and remittance process for the withheld VAT should be conducted separately from the filing and remittance of VAT owed on the taxable supplies by the appointed companies. Suppliers whose output VAT is withheld have the opportunity to offset the input VAT paid on the goods they have purchased or imported. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.