Legal Standpoint on application and operation of the value Added Tax Act, in Nigeria.
The Value Added Tax Act does not limit itself to only suppliers of goods but extends the duty of collection and remission of VAT to also those whose nature of business is to supply services.
Suppliers of goods could be defined as those whose businesses involve buying and selling of commodities, either in the open market, malls or shops. This category of business no doubt are bound by the Value Added Tax Act with the duty of collection and remission of VAT and default of which attracts various sanctions.
While supplier of services could be defined or likened to an event planner, surveyor, a lawyer or law firm, who undoubtedly supplies services to the public for a fee charged. These suppliers of services are also caught up by the law and are bound to charge and remit to the FIRS value Added Tax as stipulated by the Value Added Tax Act on the fees they charge their clients.
Obviously, this raises series of questions in your mind as to how this affects your business? And whether your business is bound by the Value Added Tax Act, to collect and remit VAT.
This is where B.I.G CONSULTS steps in, to help you by assessing the nature of your Business, determine if your business, goods or services fall under the category of taxable business, goods or services or whether they fall under the category of goods and services exempted from being taxed in accordance with the Value Added Tax Act.