The Federal Inland Revenue Service (FIRS) has postponed its intended commencement of the automated collection of Value Added tax (VAT) on imported goods purchased through digital platforms.
You may recall that the 2020 Finance Act amended the Value Added Tax (VAT) Act to require non-residents that make taxable supplies of goods and services to Nigerian customers to register and account for VAT on supplies to Nigeria. Following this amendment, the FIRS issued "Guidelines on Simplified Compliance Regime for Value Added Tax (VAT) for Non-Resident Suppliers" on 11 October 2021, with an effective date of 1 January 2022 with respect to supply of services and intangibles, and 1 January 2024 for goods.
The FIRS had initially planned to roll out the regime with respect to supply of goods by non-resident suppliers, by 1 January 2024. However, the FIRS has decided to postpone it, to afford more time to develop a seamless process and collaborate more effectively with key stakeholders - for example the Nigeria Customs Service. Pending any next steps, the FIRS has stated that the existing guidelines for services and intangibles provided by non-resident suppliers, continue to remain in effect.
See PwC Alert on the existing guidelines for the supply of services and intangibles by non-resident suppliers.