close
Business

Nigerians To Pay Tax On Internet Transactions From January 2020

20190826_181316

Nigerians will henceforth begin to pay tax on internet transactions from January 2020. The Executive Chairman of the Federal Inland Revenue Service, Babatunde Fowler, who made this known, said that the agency will begin to impose the tax.

The value-added tax both on domestic and international will take effect from January 2020.

Fowler at the African Tax Administration Forum in Abuja,
said, “We have thrown it out to Nigerians. Effective from January 2020, we will ask banks to charge VAT on online transactions, both domestic and international.

“VAT remains the cash cow in most African countries, with an average VAT-to-total tax revenue rate of 31 per cent.

“This is higher than the Organisation for Economic Cooperation and Development’s average of 20 per cent.

“This statistics, therefore, is a validation of the need for us to streamline the administration of this tax with the full knowledge of its potential contributions to national budgets.

“It is, however, also bearing in mind the rights of our taxpayers.”

Please Do Leave a Comment

%d bloggers like this: