FIRS sets deadline on monthly remittance of VAT

The Federal Inland Revenue Service has said all companies must remit value-added tax and withholding tax by the 21st day of every month.

Chairman, FIRS, Babatunde Fowler, says the agency has noticed that some companies did not deduct VAT/ Withholding tax from the compensation paid to their distributors, contrary to the provisions of the ‘Companies Income Tax.

Mr Fowler added that compensation due to company’s distributors and customers in the form of commission and rebate, and by whatever means of payments, whether by cash, credit note or even goods-in-trade must be subjected to VAT/ WHT at the appropriate rate as applicable.

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