FIRS to commence digital collection of VAT from traders

By Ibiyemi Mathew

The Federal Inland Revenue Service (FIRS) has revealed plans to commence digital taxation of market traders in the informal sector.

The FIRS disclosed this in a statement stating that it is partnering with the Market Traders Association of Nigeria to collect and remit VAT from their members especially those in the informal sector using a unified systems technology.

The FIRS noted that it is partnering with MATAN to collect and remit Valued Added Taxes from their members especially those in the informal.

“This collaboration is known as VAT Direct Initiative, a collaboration between FIRS and MATAN where MATAN promotes awareness on VAT collection and remittance in the marketplace and informal sector, while also simplifying VAT payment and remittance for the marketplace and informal sector using a purpose-built digital platform,” the statement read.

The agency also noted that MATAN has a digital platform that enumerates their members giving them a digital ID card and tracks their turnover so that VAT accrued is collected and remitted to the FIRS.

“The Initiative is the first of its kind that will utilize technology to foster collaboration between the FIRS and the marketplace for the collection and remittance of VAT.

“FIRS says this will help tackle multiple taxations in the marketplace through partnerships with security agencies to curb the activities of touts and self-imposed tax collectors.

“This will also boost VAR revenue generation for the three tiers of government, which in turn means more money to fund infrastructure and social amenities,” the FIRS revealed.

The Market Traders Association of Nigeria, founded in 1995, in a statement boasted of having the largest membership in Nigeria’s informal market with a membership of over 40 million.

Members of the association are expected to receive an ID card upon enumeration, which would contain their Tax Identification Number and other personal details.