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What You Should Know About Valued Added Tax: Paying As You Consume - Politics (2) - Nairaland

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Re: What You Should Know About Valued Added Tax: Paying As You Consume by Fuckthamods: 10:06pm On Aug 14
asuustrike1:

The problem is not the politicians but us who foolishly vote them into power out of sentiment
And we take shít from them, we are even too scared to protest
Re: What You Should Know About Valued Added Tax: Paying As You Consume by asuustrike1: 10:07pm On Aug 14
Fuckthamods:

And we take shít from them, we are even too scared to protest
Yeah
Re: What You Should Know About Valued Added Tax: Paying As You Consume by asuustrike1: 10:08pm On Aug 14
Well-done op. Can Seun enlighten me on how vat on online products works?
Re: What You Should Know About Valued Added Tax: Paying As You Consume by mixta140(m): 10:11pm On Aug 14
Copied
Re: What You Should Know About Valued Added Tax: Paying As You Consume by Lusola15: 10:49pm On Aug 14
Please explain this

The difference between VAT and consumable tax


Ravon:
Ever wondered how the concept of Value Added Tax (VAT) works? or wondered why you have to pay an additional 5% charge on the cost of a good or service?


ided that 100 per cent production of such company is for export otherwise tax shall accrue proportionately on the profits of the company.
- Plant, machinery and equipment purchased for utilization of gas in downstream petroleum operations

These offences carry penalties ranging from fines of up to N 10, 000 to various terms of imprisonment. In some cases, the fines or penalties depending on the amount of evasion involved. The law is even stricter in dealing with officers of the Board. Any officer of the Board who aids or abets the commission of any of the offences under the VAT law will be liable to a fine of N 50, 000.00 and/or imprisonment for five years.

VAT RATES AND PENALTIES

The World Corporate and Income Tax Comparison Rates, VAT/GST rates around the world range from 5% to 21%. Nigeria’s VAT rate is one of the lowest in the world at 5%. Entities that charge and receive VAT are expected to file/remit it to the Federal Inland Revenue Service through the tax authority on or before the 21st day of the month following that in which the purchase or supply was made.

Section 35 of VAT Act stipulates a penalty of N 5,000.00 every month that returns are not made.

Failure to register with FIRS within the specified time attracts a penalty of N10,000 for the first month in which the failure occurs & N5,000 for the subsequent months in which the failure continues. If this persists, the premises where the business is carried out may be sealed.

Illustration:

If a product moves from Raw Materials Producer

(A) to Manufacturer

(B) at N1,000.00 then to wholesale

(C) at N1,500.00, then to Retailer

(D) at N2,000.00; and finally, to the consumer who pays N2,500 to the Retailer, VAT payable on the product at 5% is as follows:

The DUE DATE for filing returns and remitting VAT is 21st day of the month following the month of transaction i.e 21st day of every month. Failure to file returns and remit VAT attracts penalties as stipulated in the VAT Act.

A pictorial illustration of how VAT works

SOURCE: https://brandspurng.com/2019/08/14/what-you-should-know-about-valued-added-tax-paying-as-you-consume/

Re: What You Should Know About Valued Added Tax: Paying As You Consume by RonKenoly: 11:44pm On Aug 14
Florblu:



I'm sure there's no tarrif attached to creating a thread yet. Please simplify it on another thread, let's see how easy it is

Blaming others for the little thing they do to help humanity while sitting down in a "hole" to castigate them
Don't get all sentimental with me, I am not a blogger. So why the fvck should I. Did anybody force him in the first place.

How is he helping humanity, when we can't simplify it for the common man. Do you know why this particular thread has low comment? Because people are clueless on what he was trying to pass across. Reading it wasn't enjoyable.

Just because I can't rule the country, that doesn't mean I should applaud the president for whatever discussion he decide to take.

1 Like

Re: What You Should Know About Valued Added Tax: Paying As You Consume by Jaqenhghar: 12:44am On Aug 15
Any form of tax in that shithole is a scam. Peoppe whobpay ta are the ones who suffer bu then the people suffering like it like that
Re: What You Should Know About Valued Added Tax: Paying As You Consume by AerialMapper: 3:28am On Aug 15
At the end what happens to all the VAT collected.

It is shared among all the states!

Some states generate much more VAT than others yet it is squandered by all.

While you are enjoying your beers, champagne, whiskey; the hisbah in the north are breaking bottles of alcohol and calling it haram. They do not call the proceeds haram though and will gladly collect it.

1 Like

Re: What You Should Know About Valued Added Tax: Paying As You Consume by Charles545(m): 5:07am On Aug 15
davodyguy:


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There's so much ambiguity in what the OP lifted and dumped here.

I'll simply as follows.

1. VAT is to be paid by the beneficiary of a service to the service provider. Good example. DSTV or Startimes subscription may actually be ₦1900. But they need to collect VAT on behalf of FIRS. Hence your subscription would then be ₦1900+(5% of ₦1900)= ₦1995 per month. But in most cases the companies round up the figure to ₦2000.

2. After DSTV collects the VAT from you the subscriber, they're not to include that ₦95 as part of their income, rather they must remit to FIRS(Federal Inland Revenue Services)

3. I'll use myself as an example. I'm a consultant in Real Estate and Legal Professions. Hence, when I charge for a service or court case, I must collect VAT from my client. Here's it. If I'm to charge ₦5,000,000 for a case/service, I'll simply ask the client to pay ₦5,000,000+(5% of ₦5,000,000)= ₦5,250,000.

At the end of the month, I must remit the extra ₦250,000 to FIRS.

4. All companies registered either Business Name, PLC or LTD, they must collect VAT from their clients or consumers of their services and remit same to FIRS.

5. The day you register your company, same day CAC send your details to FIRS and FIRS generates what's called TIN(Tax Identification Number). That number is like and accout. Hence, when you pay or you don't pay, FIRS will just go to your account to see your balance.

6. Can you lie to FIRS that you didn't make money? Yes you can, but you'll be caught. Cos FIRS will go to your bank to show them your Statement of Account, with that you can be sanctioned or jail for either tax avoidance or tax evasion

1 Like

Re: What You Should Know About Valued Added Tax: Paying As You Consume by Charles545(m): 5:08am On Aug 15
davodyguy:

SIMPLY SIMPLIFIED!
There's so much ambiguity in what the OP lifted and dumped here.

I'll simply as follows.

1. VAT is to be paid by the beneficiary of a service to the service provider. Good example. DSTV or Startimes subscription may actually be ₦1900. But they need to collect VAT on behalf of FIRS. Hence your subscription would then be ₦1900+(5% of ₦1900)= ₦1995 per month. But in most cases the companies round up the figure to ₦2000.

2. After DSTV collects the VAT from you the subscriber, they're not to include that ₦95 as part of their income, rather they must remit to FIRS(Federal Inland Revenue Services)

3. I'll use myself as an example. I'm a consultant in Real Estate and Legal Professions. Hence, when I charge for a service or court case, I must collect VAT from my client. Here's it. If I'm to charge ₦5,000,000 for a case/service, I'll simply ask the client to pay ₦5,000,000+(5% of ₦5,000,000)= ₦5,250,000.

At the end of the month, I must remit the extra ₦250,000 to FIRS.

4. All companies registered either Business Name, PLC or LTD, they must collect VAT from their clients or consumers of their services and remit same to FIRS.

5. The day you register your company, same day CAC send your details to FIRS and FIRS generates what's called TIN(Tax Identification Number). That number is like and accout. Hence, when you pay or you don't pay, FIRS will just go to your account to see your balance.

6. Can you lie to FIRS that you didn't make money? Yes you can, but you'll be caught. Cos FIRS will go to your bank to show them your Statement of Account, with that you can be sanctioned or jail for either tax avoidance or tax evasion
Re: What You Should Know About Valued Added Tax: Paying As You Consume by yorke1: 8:01am On Aug 15
davodyguy:

There's so much ambiguity in what the OP lifted and dumped here.

I'll simply as follows.

1. VAT is to be paid by the beneficiary of a service to the service provider. Good example. DSTV or Startimes subscription may actually be ₦1900. But they need to collect VAT on behalf of FIRS. Hence your subscription would then be ₦1900+(5% of ₦1900)= ₦1995 per month. But in most cases the companies round up the figure to ₦2000.

2. After DSTV collects the VAT from you the subscriber, they're not to include that ₦95 as part of their income, rather they must remit to FIRS(Federal Inland Revenue Services)

3. I'll use myself as an example. I'm a consultant in Real Estate and Legal Professions. Hence, when I charge for a service or court case, I must collect VAT from my client. Here's it. If I'm to charge ₦5,000,000 for a case/service, I'll simply ask the client to pay ₦5,000,000+(5% of ₦5,000,000)= ₦5,250,000.

At the end of the month, I must remit the extra ₦250,000 to FIRS.

4. All companies registered either Business Name, PLC or LTD, they must collect VAT from their clients or consumers of their services and remit same to FIRS.

5. The day you register your company, same day CAC send your details to FIRS and FIRS generates what's called TIN(Tax Identification Number). That number is like and accout. Hence, when you pay or you don't pay, FIRS will just go to your account to see your balance.

6. Can you lie to FIRS that you didn't make money? Yes you can, but you'll be caught. Cos FIRS will go to your bank to show them your Statement of Account, with that you can be sanctioned or jail for either tax avoidance or tax evasion

Well explained
Re: What You Should Know About Valued Added Tax: Paying As You Consume by oludarekehinde(m): 8:54pm On Aug 15
Educative
Re: What You Should Know About Valued Added Tax: Paying As You Consume by chayoski: 11:54am On Aug 17
davodyguy:

There's so much ambiguity in what the OP lifted and dumped here.

I'll simply as follows.

1. VAT is to be paid by the beneficiary of a service to the service provider. Good example. DSTV or Startimes subscription may actually be ₦1900. But they need to collect VAT on behalf of FIRS. Hence your subscription would then be ₦1900+(5% of ₦1900)= ₦1995 per month. But in most cases the companies round up the figure to ₦2000.

2. After DSTV collects the VAT from you the subscriber, they're not to include that ₦95 as part of their income, rather they must remit to FIRS(Federal Inland Revenue Services)

3. I'll use myself as an example. I'm a consultant in Real Estate and Legal Professions. Hence, when I charge for a service or court case, I must collect VAT from my client. Here's it. If I'm to charge ₦5,000,000 for a case/service, I'll simply ask the client to pay ₦5,000,000+(5% of ₦5,000,000)= ₦5,250,000.

At the end of the month, I must remit the extra ₦250,000 to FIRS.

4. All companies registered either Business Name, PLC or LTD, they must collect VAT from their clients or consumers of their services and remit same to FIRS.

5. The day you register your company, same day CAC send your details to FIRS and FIRS generates what's called TIN(Tax Identification Number). That number is like and accout. Hence, when you pay or you don't pay, FIRS will just go to your account to see your balance.

6. Can you lie to FIRS that you didn't make money? Yes you can, but you'll be caught. Cos FIRS will go to your bank to show them your Statement of Account, with that you can be sanctioned or jail for either tax avoidance or tax evasion
Explicit. Thanks!

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