Nigeria’s Taxman Targets Fintechs and Corporations in Crackdown on VAT and E-Invoicing
Nigeria’s Federal Inland Revenue Service (FIRS) is ramping up its efforts to collect taxes, targeting both large corporations and individuals leveraging fintech platforms. This move aims to ensure compliance with Value Added Tax (VAT) regulations and streamline the tax collection process across the country. The initiative underscores the government’s commitment to optimizing revenue generation, particularly within the rapidly evolving digital economy.
FIRS Digital Initiatives: Real-Time Tracking and Mandatory E-Invoicing
The FIRS is employing technology to enhance its tax collection capabilities. A real-time portal launched on July 25th is designed to track all payments subject to VAT. Banks, card networks, and payment providers are required to integrate with this portal, enabling the FIRS to monitor transactions conducted by Nigerians. In addition to this, an e-invoicing platform was introduced on August 1st, aimed at corporate taxpayers. This platform mandates companies with an annual turnover of at least ₦5 billion (approximately $3.3 million) to register. As of Monday, the FIRS reported that 1,000 companies have signed up, representing about 20% of the eligible corporate entities, including major players like MTN Nigeria. The e-invoicing system will verify the authenticity and value of invoices.
This represents a significant move by the Nigerian government to modernize its tax administration, particularly concerning the fintech sector and corporate tax obligations.
Keywords
Related Keywords: TechCabal Daily, African Tech, Tech Startup Funding, Nigerian Tech, Startup Investment, Venture Capital, African Startups, Tech News Africa, TechCabal, Funding Round
