VAT ‘war’ fuels struggle for true fiscal federalism as states seek more funds - Punch Newspapers

As the September 2021 deadline when businesses are expected to file Value Added Tax claims draws close, DEBORAH TOLU-KOLAWOLE writes on how the battle for the control of taxes is making the Federal Government uneasy in the fight to save a huge part of its projected revenue

The state government had sought 11 reliefs from the court. These include a declaration that the power of the Federal Government to delegate the collection of taxes could only be exercised by the state government or other authority of the state and no other person, according to provisions in part II of the Second Schedule of the 1999 Constitution as amended.

Following the ruling, the Lagos State Government asked the FIRS to stop giving demand notices for the payment of VAT in the state and to render account, within seven days, of all sums collected as VAT in the current accounting cycle in the state.The 2020 journal of a law firm, Banwo and Ighodalo, stated, “The FIRS clarifies changes introduced to Nigerian VAT regime by the Finance Act, 2019.”

“ The beneficial owner of the rights in or over the goods is a taxable person in Nigeria and the goods or right is situated, registered or exercisable in Nigeria. Similarly, services are deemed to be supplied in Nigeria for VAT purposes if: The services are rendered in Nigeria by a person physically present in Nigeria at the time of service provision, or The services are provided to a person in Nigeria, regardless of whether the services are rendered within or outside Nigeria.

“VAT is chargeable on services provided to persons while in Nigeria regardless of the medium of delivery of the services; VAT is chargeable on services rendered remotely, online, or by virtual means to Nigerian residents or persons in Nigeria; and services rendered to and consumed by a Nigerian resident while physically outside Nigeria are not liable to VAT in Nigeria.”

I havn't seen any Nigerian governor as bold as GovWike, to the extent of going against the NigeriaGov. He should come out as president in 2023.

The more power the states have over their resources, the less powerful and attractive the Presidency. The only reason the regions feel marginalized is because of uneven distribution of national wealth. People will know who to hold responsible when things don't get done too.

Stupid elderly😡

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