The Federal Inland Revenue Service (FIRS) has officially announced the postponement of the implementation guidelines for the value-added tax (VAT) simplified compliance regime related to the supply of low-value goods through digital means by non-resident suppliers.
This development comes as the tax agency seeks to ensure a seamless and efficient process for the collection and remittance of taxes in this category.
In an official statement released earlier today, FIRS cited the need to conclude the development of a more effective process before proceeding with the implementation.
The tax agency is committed to engaging with stakeholders to guarantee a smooth and effective development and subsequent implementation of the guidelines for goods supplied to Nigeria through digital platforms by non-resident suppliers.
While the implementation of the guidelines on the supply of services and intangibles by non-residents began on January 1, 2022, it is important to note that this postponement specifically pertains to the guidelines on the simplified compliance regime for Value Added Tax (VAT) on goods supplied by non-resident suppliers through digital platforms. FIRS emphasized that the implementation of guidelines for services and intangibles remains unaffected.
The initial implementation date for the postponed guidelines on the supply of goods through digital platforms by non-resident suppliers was scheduled for January 1, 2024. However, FIRS has now officially shifted this commencement date.
In the meantime, the tax agency has reiterated that non-resident suppliers of services and intangibles should continue to adhere to the existing guidelines concerning the timely collection and remittance of taxes.
The tax agency remains dedicated to effective collaboration with stakeholders to address any concerns and ensure a successful implementation in due course.
