my God.

Like if you support this government share if you want the present government out

Good write up as usual. Autojosh well done

dont get that

Situation001:


16 yards

okk

On point

Front page material

Likes for my signature

Nairaland

A Value Added Tax is a type of consumption tax levied on products at every point of sale where value has been added to the product. It starts from the raw material stage to the point of sale where it is bought by the final consumer.

Consumption tax is simply defined as a tax levied on the purchase of goods and services. Every seller in the production chain charges a VAT to the buyer, which is then remitted to the government. The amount of VAT levied at each point of sale along the production chain is based
on the value added by the seller.

This is provided for by the Value Added Tax Decree 102 of 1993 which actually became
effective in 1994. Value Added Tax is charged 5% on all VATable goods and services. The VAT
decree requires manufacturers, wholesalers, importers, and suppliers of VATable goods and
services to be registered within six months of commencement of business. VAT is administered
by the Federal Inland Revenue Services (FIRS) through its VAT directorate with offices in
almost all the local government areas in the country.

Who are those that should pay VAT?

A VATable person is one that deals in VATable goods and services. Examples of such include:

• A limited liability company e.g. Tunde Limited
• A firm e.g. Law & Co.
• A sole trader e.g. Emeka & Brothers
• An individual e.g. Lawal shops
• A Club or society e.g. Gbaja Social Club

When you register and become a VAT payer, 5% of the money your customers pay for your
goods and services are calculated as your OUTPUT VAT.

On the other hand, when you purchase any goods and services, 5% of the money you pay is
calculated as your INPUT VAT.

To calculate the amount that goes to the government, you have to subtract your INPUT VAT
from the OUTPUT VAT
That is; Total VAT payable to the government = Output VAT – Input VAT
Calculating VAT

For Instance
In 2001, a phone manufacturer sold a phone to a final consumer for N250,000. The raw materials
for this phone was bought at N100,000. Find the
(i) Output VAT
(ii) Input VAT
(iii) Total VAT payable to the government

Solution
Output VAT = The 5%VAT you charge on goods and services you supply or sell.
Input VAT = The 5% VAT you pay on goods and services that you use.
Since the manufacturer of the product sold the product for N250,000, the 5% of the 250,000
Naira is the output VAT. (This is constant because we assume that 5% VAT is always added on
every goods and service sold).
Output VAT = 5% of 250,000 Naira
Output VAT = 12,500 Naira.

While…
Since the manufacturer spent 100,000 Naira to buy the raw materials, 5% of that amount is called
the input VAT.
Input VAT = 5% of 100,000 Naira
Input VAT = 5000 Naira.
The total VAT payable = Output VAT – Input VAT
Total VAT payable = 12,500 – 5000
Total VAT payable = 7500 Naira.

Second Instance
In April 2018, Mr. Jide bought goods for N200,000 and sold same for N400,000. Calculate the
total VAT he should pay for the month of April.

Solution
Output VAT = 5% of his sales
Output VAT = 5% of 400,000 Naira
Output VAT = 20,000 Naira.

While…
Input VAT = 5% of inventory purchase
Input VAT = 5% of 200,000 Naira
Input VAT = 10,000 Naira.

Therefore…
Total VAT payable for the month of April is;
Output VAT – Input VAT
Total VAT Payable
20,000 – 10,000
10,000 Naira

This amount is payable where the output tax exceeds the input tax. In a situation where the input
tax exceeds the output tax, the deficit can be claimed by a refund.

There are three(3) ways to claim your refund:
1. The credit method
2. Direct cash refund method and
3. A combination of the two.

The application of the credit method is the most widely used because of the difficulty that may
be encountered with cash refunds.

GOODS EXEMPTED FROM VAT

Certain goods and services are not VATable. The implication is that VAT charges are not
applicable to it. On the other hand, certain goods and services are considered zero rates. This
implies that the goods are VATable, but the application is zero percent.

Examples of Goods exempted from VAT
• Medical and pharmaceutical products
• Basic food items
• Books and educational materials
• Baby products
• Commercial vehicles and their spare parts
• Agricultural equipment and products and veterinary medicine.
• Fertilizers, farming machinery, and farming transportation equipment
• All exports
• Plants and machinery used in an export processing zone
• Plant, machinery, and equipment purchased for utilization of gas in downstream petroleum operations
• Tractors, ploughs, agricultural equipment and implements purchased for agricultural purposes.



Services Exempted From VAT
• Services of Community Banks, Peoples Banks, and primary Mortgage Institutions.
• Plays and performances conducted by educational institutions as part of learning
• Services related to education
• Medical services
• All exported services


Form used by Tax Payer
The following forms are in use by the taxpayers
1. Form VAT 001
2. Form VAT 002

Form VAT 001 –
VAT Registration Form
This is the standard registration form for VAT. It is supposed to be completed by a potential
VAT payer within six months of the commencement of business.
VAT Form 001 usually contains the following information:
• The name of the taxpayer
• The principal place of business of the taxpayer
• Other branches or units where business is carried on
• The date of incorporation of business
• The date of commencement of business
• The registration number of the business
• The nature of the business
• Types of goods/services dealt in
• The local VAT office where registration is sought
• The name and designation of a principal officer of the business
• The date application is filled.

The application must also bear the official stamp of the business, a formal written application for
registration on the business letter-headed paper as well as the signature of the principal officer. A
copy of the registration certificate must be attached but the original would be presented for
sighting.

FORM VAT 002
Value Added Tax Returns
This is the standard value-added Tax returns to be filled every month. A typical form 002
contains the following information.
• VAT identification number
• Name and address of the VAT payer
• The local VAT office where the return is being filled
• The month for which return is related
• Total VATable supplied made
• The zero-rated supplied included in the VATable supplies
• The total supplied subjected to VAT
• VAT charged
• Any adjustments
• Total tax output
• VAT on domesticated supplies received
• VAT adjustments on supplies received
• VAT on import
• Total VAT payable
• VAT on purchases not wholly used to be backed out of total VAT payable
• VAT deducted at source, also to be backed out of VAT payable
• Total input tax
• The amount payable or refundable
• A declaration by an official of the taxpayer that the particulars in the returns are true and correct.


WHAT TO DO! VAT AND WHT INVOICE DEDUCTIONS - PRACTICAL OVERVIEW - read on

NOTE: VAT Returns must be filed with the FIRS on or before the 21st day of the month
following the month of transaction. Failure to comply will attract the following penalties:

i. For businesses not registered for VAT: A penalty of N10,000 for the first month in which
the failure occurs and N5,000 for each subsequent month. An unregistered business that
fails to remit VAT after a period of time will be sealed up by the FIRS.

ii. For businesses registered for VAT: A penalty of a sum equal to 5% per annum plus
interest at a commercial rate payable within 30 days of notification by the Tax Authority.

Thank you for reading. I hope you learned one or two things?

If you have any suggestions or feedback from this article or ideas on future articles you think we should research and write, please send us an email at onaaramichael@gmail.com

ok

Too bad

REALLY

Its painful

figure007:
to tell you one of the main problem of Nigeria... And that's why the nation finds it hard to grow... What's stopping them from wearing same thing and be one.... Division everywhere

Religion Discrimination

The third picture shows the true Nigeria.......

silverbirdng:
On the eve of Children’s Day, May 26, wives of state governors in Nigeria visited President Muhammadu Buhari and his wife, Aisha in Aso Rock.

President Buhari commended the women for the various humanitarian activities they carry out in their states.
He said he would canvass more moral and financial support for them.

“I appreciate the role you are playing as your work helps in pricking the conscience of the people.” He especially commended their work on the IDPs and disadvantaged children as well as the fight against drug abuse.
President Buhari also encouraged them to interface with Central Bank of Nigeria and Federal Ministry of Agriculture over new and existing opportunities that women farmers and entrepreneurs can take advantage of.

The wife of the President, Mrs Aisha Muhammadu Buhari underscored the complementary role that wives of Governors play in supporting the programmes and policies of their husbands, stressing the need for the governors to encourage them. She highlighted areas where efforts are more pronounced as girl-child education, child abuse, women and youth empowerment and health promotion.

Äs mothers of the states, wives of governors have the ears of women and youths; this is so because they run programmes that directly touch these categories of Nigerians” she said, calling on the President to support their work.
Chairperson, Northern Governors Wives Forum, and wife of the Governor of Bauchi State, Mrs. Hadiza Abubakar said apart from issues of maternal health and girl-child education, the flagship programme of the forum is prevention of substance abuse, for which they rally stakeholders to come to a holistic solution. She commended the ban on codeine-containing cough syrups, describing it as a major breakthrough.

The Forum, she stated, is advocating for the revival of moribund drug rehabilitation centres and the establishment of new ones in states that do not have them.
Chairperson, Southern Governors Wives Forum and wife of the Governor of Imo State, Mrs. Nkechi Okorocha, said their activities take a cue from the works of Mrs. Buhari’s Future Assured Programme and focuses on issues of cultism, kidnapping, child labour, baby factories and youth restiveness. She said the Forum had trained 1000 women in different skills, while 2000 school children were supported with educational materials.

https://silverbirdng.com/2018/05/30/buhari-holds-meeting-wives-36-state-governors-photos/

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TribesNG:
Wow Falz Has done it. Kudos to him.
This is his fastest growing Video on YouTube.
The Music Video Has been trending for days on YouTube & Twitter.

http://toribaze.com/download-music/falz-this-is-nigeria/

How much did nairaland collect from Yomzzyblog for this thrash?


Lala..... I will refund

Stop promoting nonsense cos it doesnt make sense at all

Yomzzyblog:
@YomzzyBlog

Nigerian self-acclaimed male barbie, Bobrisky shared this photo via his IG page as he looks absolutely stunning in this Bridal attire.

Gists Via: www.yomzzyblog.com/2018/05/bobrisky-slays-in-bridal-attire-photo.html

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na wa oo


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Check my signature