Babatunde Fowler, the Executive Chairman of the Federal Inland Revenue Service, has made it known that from January 2020, the agency will begin to impose a value-added tax on Internet transactions and this applies to both domestic and international.
This was made known on Monday at the African Tax Administration Forum in Abuja.
He 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.”