The VAT Direct Initiative, a plan to enable the Federal Government to collect Value Added Taxes from the Informal Sector and eliminate Multiple Taxation in the Informal Economy, was unveiled by the Federal Inland Revenue Service (FIRS).
The Federal Inland Revenue Service, made this known in a statement on Monday, noting that FIRS is partnering with the Market Traders Association of Nigeria to collect & remit VAT from their members especially those in the informal sector using a unified systems technology.
“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.”
FG also, noted that the Market Traders Association of Nigeria, founded in (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, adding.
“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.
“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.”