In a public notice released by the Federal Inland Revenue Service (FIRS), it has been announced that the FIRS will undertake a comprehensive nationwide Value Added Tax (VAT) and Withholding Tax (WHT) Compliance monitoring exercise, commencing on Monday, October 23, 2023.
This exercise aims to ensure that businesses and individuals adhere to the VAT and WHT regulations, which are critical components of the tax system.
VAT is levied on the value added to goods and services at each stage of production or distribution, while WHT is a mechanism for collecting income tax by taxing certain types of income at the source.
A statement from the agency noted:
”The FIRS’ initiative to monitor compliance nationwide underscores its commitment to enhancing tax collection and ensuring that the tax laws and regulations are upheld.
”This exercise is expected to promote transparency and fairness in the tax system and contribute to the country’s revenue generation efforts.
”Businesses and individuals need to be aware of this exercise and comply with VAT and WHT requirements to avoid potential penalties or sanctions.”
