FIRS Asks Building Owners to Charge MTN, Airtel, Glo, TV Stations VAT For Cell Towers, Masts, Others
- The Federal Inland Revenue Service (FIRS) has asked building owners with masts to begin VAT charges
- The agency said the VAT would be charged monthly on the towers and masts, effective September 1
- It said the development is contained in the provisions of the 2023 Finance Act
The Federal Inland Revenue Service (FIRS) has stated a VAT of 7.5% would be charged on items excluded from the building beginning September 1, 2o23.
The FIRS announced the development in a public notice released recently and signed by its Executive Chairman, Muhammad Nami.
Source: Getty Images
FIRS lists items exempted from the tax
Reports say the revenue agency stated that examples of items excluded from buildings are radio and television masts, transmission lines, cell towers, mobile homes, and trailers.
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It said the 2023 Finance Act made the provision was scheduled to begin on May 1, 2023, but delayed until September 1.
FIRS said:
“The definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land,” the notice reads.
According to the service, Section 14(3) of the VAT act was amended to reflect that persons authorised to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which they withheld or collected the VAT.
Tertiary education Tax and Income Tax now exempted
The service said the rate of tertiary education tax (TET) was changed to three percent of assessable profits.
“Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than the 14th day of the month following that in which the VAT was withheld or collected.”
“The new TET rate of 3% shall take effect for TET becoming due in respect of the accounting period ending on or after September 1 2023,” the FIRS said.
The agency also said sections 32, 34, and 37 of the Companies and Income Tax granting allowances pertaining to capital expenditure incurred in in some instances and tax exemption on income made from convertible currencies from tourists by hotels have been revoked.
Per FIRS, the development means that all said allowances and tax exemptions are no longer available for tax returns becoming due on or after September 1, 2023.
FIRS sets new record, collects over N10trn revenue in 2022, Buhari hails achievement
Legit.ng reported that the Federal Inland Revenue Service (FIRS) collected more than N10 trillion in 2022, its highest revenue collection in a single year. According to Punch,
It is also the first time that the FIRS will cross the 10-trillion naira mark in tax revenue collection.
The information was revealed in the "FIRS 2022 Performance Update," a report signed by the company's executive chairman, Muhammad Nami, and made public on Monday, January 23, 2023.
Source: Legit.ng
