UNDERSTANDING THE VAT (MODIFICATION) ORDER OF 2021.

In September 2021, the VAT (Modification) Order was signed, and it was subsequently issued by the Minister of Finance, Budget, and National Planning in October, with a commencement date of 30th July 2021. This Order brings about significant modifications and expansions to the list of exempted goods and services outlined in the First Schedule to the Value Added Tax (VAT) Act. It also aims to provide clarity on items already exempted in the VAT Act. Key Changes in the 2021 Order: Part I of the First Schedule (VAT Exemptions): Part II of the First Schedule: Part III of the First Schedule: Interpretations: This VAT (Modification) Order of 2021 introduces significant changes to the VAT landscape, impacting various sectors and services. Businesses and individuals should carefully review these modifications to ensure compliance and a clear understanding of their VAT obligations. 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.