The National Bureau of Statistics (NBS) yesterday, said that sectoral distribution of Value Added Tax (VAT) data for 2020 reflected that the sum of N651.77 billion was generated as VAT in 2020 as against N600.98 billion generated in 2019. This represents 8.45 per cent growth year-on-year.
In a report published on its website in Abuja, the Bureau noted that professional services generated the highest amount of VAT with N95.92 billion generated and closely followed by other manufacturing generating N67.63 billion, with Commercial and Trading generating N31.10 billion, while Mining generated the least. It was closely followed by Textile and Garment Industry and Pharmaceutical, Soaps and Toiletries with N127.58 million, N499.19 million and N648.78 million respectively.
Out of the total amounted generated in 2020, N335.82 billion came from Non-Import VAT locally, while N161.74 billion was generated as Non-Import VAT for foreign. The balance of N154.21 billion came from Nigeria Customs Service (NCS)-Import VAT.
Nigeria’s main VAT rate is 7.5 per cent (raised from 5 per cent on Feburary 1, 2020). Only a limited number of supplies are nil-rated, meaning any VAT suffered may be recredited to the tax payer.
However, Sales Tax Rate in Nigeria is expected to reach 7.50 per cent by the end of 2020, according to Trading Economics global macro models and analysts expectations. In the long-term, the Nigeria Sales Tax Rate – VAT is projected to trend around 7.50 per cent in 2021, according to the econometric models.
Meanwhile, the Federal Inland Revenue Service (FIRS) said it has made available detailed information to guide taxpayers and the general public on rates payable as stamp duty.
