MON, JULY 03 2023-theGBJournal |The Federal Inland Revenue Service (FIRS) and Market Traders Association of Nigeria (MATAN) Monday announced a new Value Added Tax (VAT) collection initiative, the VAT Direct Initiative.
The collaboration is aimed at collecting and remitting Value Added Tax (VAT) from MATAN members—especially those in the informal sector, using a unified systems technology, and it is the first of its kind program that will utilize technology to foster collaboration between the FIRS and the marketplace for the collection and remittance of VAT.
MATAN is the largest player in Nigeria’s market space with membership of well over 40 million traders across the country. MATAN also has a digital platform which enumerates their members giving them a digital ID and tracks their turnover so that VAT accrued is collected and remitted to the FIRS.
FIRS hopes that through the initiative, it will help tackle multiple taxation in the market place through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market space.
”The VAT Direct Initiative will boost VAT revenue generation for the three tiers of government, which in turn means more money to fund infrastructure, provide social amenities and cater for welfare of citizens,” FIRS said.
FIRS said MATAN members will each receive an identity card upon enumeration. The card contains their Tax Identification Number (TIN) and other personal details.
”The VDI will have a monitoring and evaluation team comprising of FIRS officers and MATAN members to ensure transparency, accountability, prompt VAT remittance, sustained commitment and reporting which are vital to build the public confidence in the initiative,” FIRS said.
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