The Federal Inland Revenue Service (FIRS) has made available updates on the implementation of the input value added tax (VAT) filing procedures via its administration solution, TaxPro-Max.
TaxPro-Max enables seamless registration, filing, payment of taxes, and automatic credit of withholding tax as well as other credits to the taxpayer’s accounts.
Input VAT is the value-added tax on the price paid for eligible goods or services.
Firms that are VAT-registered can charge and add VAT to the value of goods and services they supply.
In a statement on Friday, FIRS urged “taxpayers to file their April 2023 returns, in May 2023 as normal. All the disabled columns will be opened and the auto credit for purchases will be disabled”.
The service explained that from June 1, 2023, taxpayers claiming input VAT for purchases should upload a purchase schedule; while those claiming input VAT for withholding VAT (WVAT) were asked to upload a WVAT schedule.
WVAT is a method of collecting VAT where a portion of the VAT is collected by appointed withholding VAT agents from payments made to a local supplier of vatable goods and services schedule.
FIRS also directed businesses claiming input VAT for imports to upload a purchase imports schedule, while also providing steps on how all input VAT claims from June 1, 2023, can be applied for.
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