Value Added Tax in Nigeria: An Overview of Notable Reforms and Implications of the Finance Act, 2019 and 2020

Abstract

The Value Added Tax (VAT) is one of the taxes levied in Nigeria. It is a type of indirect tax levied on goods and services for the value added at every stage of production and distribution. Although, divergent taxes are being levied in Nigeria, the Value Added Tax remains distinctive and has been a constant reoccurrence in judicial proceedings and political discourse. In actuality, majority of the populace do not comprehend the applicability, nature and legal framework hitherto guiding the administration, management and collection of the Value Added Tax in Nigeria. This paper therefore using doctrinal research methodology and adopting analytical approach gives an overview of the connotation, history and nature of the Value Added Tax and its applicability in Nigeria viz-a-viz some notable new provisions of the Finance Act 2019 and 2020. Also analyzed in this paper, is the legal and institutional framework guiding the administration, management and collection of the Value Added Tax in Nigeria. The recommendations in this article tilt towards the writer’s opinion on the recent issues surrounding the correct tier of government statutorily empowered to administer and manage VAT in Nigeria.