What You Need to Know About Value Added Taxes (VAT)
As a business owner, it is important to stay on the right side of the law. One of the ways to do so is by paying your Value Added Taxes (VAT). Here are some important things to note about the VAT.
What is VAT? Value Added Tax (VAT) is a form of taxation collected on behalf of the government from businesses registered with the Federal Inland Revenue Service (FIRS). In Nigeria, all businesses are mandated to remit VAT charged to purchase and sales invoices. The tax payable is at a flat rate of 5%.
VAT returns (and payments) are normally made monthly to the local VAT office on or before the 30th day of the month after the goods or services were purchased. The product listing process for Konga.com allows you to either include or exempt VAT from the price of each item.
What happens if I don’t register or remit my VAT? There are various penalties for not complying with the provisions of the VAT Law, ranging from flat monetary fines to paying two times the amount owed as VAT.
How do I remit taxes for goods sold on Konga.com? All sellers are individually responsible for remitting tax due as stated above. Konga is not responsible for the remittance of tax sold for third-party sellers on its platform. Konga does not withhold tax in any form.
Are there any items exempted from paying VAT? Some products are generally exempted from VAT. Some examples include:
- Medical, Veterinary and Pharmaceutical Raw Materials And Products
- Basic Food Items (Any unprocessed staple food item. packaged or not packaged)
- Infant Food.
- Books, Newspapers and Magazines
- Agricultural Equipment & Products
- Some Diplomatic Goods (Based On Federal Government Duty Free Concessions).
Note: The list of items is not complete and is subject to review at any time
How do I file my VAT taxes? As a “registered person” you can file your taxes by making use of any of the link below.
With all the information you have now on remitting taxes, it is advisable to ensure you do so to avoid getting in trouble with the law.