VALUE ADDED TAX (AMENDMENT) ACT 2007
CENTER FOR LAWS OF NIGERIA: FEDERAL LAWS
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VALUE ADDED TAX (AMENDMENT) ACT 2007
EXPLANATORY MEMORANDUM
This Act amends the Value Added Tax Act No, 102, 1993 and for related matters.
ARRANGEMENT OF SECTIONS
- Amendment of Act NO 002 of 1993
- General amendments.
- Amendment of section 4
- Amendment of Section 10
- Amendment of section 10A
- Amendment of section 11A
- Amendment of section 12
- Deletion of section section 13 (3) of the Principal Act
- Amendment of 15
- Amendment of section 16
- Substitution for section 36
- Amendment of section 42
- Amendment of First Schedule
- Appeals.
- Citation.
VALUE ADDED TAX (AMENDMENT) ACT 2007, No. 12
An Act to amend to Value Added Tax Act No, 102, 1993 and for related matters.
ENACTED by the National Assembly of the Federal Republic Of Nigeria
[Commencement] [16th Day of April, 2007]
Amendment of Act NO 002 of 1993
- The Value Added Tax Act (in this Act referred to as “the Principal Act”) is amended as set out in this Act.
General amendments.
- ‘Substitute for the words “VAT Office” the words ” Tax Office” wherever they occur in the Principal Act.
Amendment of section 4
- Substitute for section 4 of the Principal Act a new section “4” “Rate of tax 4. The tax shall be computed at the rate of 5 per cent on the value of all goods and services as determined, under sections 5 and 6 of this Act, except that
Goods and services listed under Part III of the First Schedule to this Act shall be taxed at zero rate.”
Amendment of Section 10
- Substitute for the word “him”, the words “the person” in this section 10 (1) of the Principal Act.
Amendment of section 10A
- Section 10 A of the principal Act is amended by-
(a) inserting immediately after the existing subsection (1), the following new subsection (2)”—
“(2) The Service may, by notice, determine and direct the companies operating in the oil and gas sector which shall deduct VAT at source and remit same to the Service” and . . .
(b) re-numbering the existing subsection “(7)” as subsection “(3 )”.
Amendment of section 11A
- Insert the following new section IIA immediately after the existing section II of the Principal Act–
“Tax invoice II A (I) A taxable person who makes a taxable supply shall, in respect of that supply, furnish the purchaser with a tax invoice containing, inter alia, the following.—
(a) tax payers identification number;’
(b) name and address;
(c) VAT registration number;
(d) the date ‘Of supply ;
(e) name of purchaser or client;
(f) gross amount of transaction; and
(g) tax charged and rate applied ..
(2) A tax invoice shall be issued on supply whether or not payment is made at the time of supply.”
Amendment of section 12
- Section 12 of the Principal Act is amended-
(a) in subsection (I ), by substituting for the figure and word “30th day” for the figure and word “21st day” ;
(b) by inserting immediately after subsection (2), the following new subsection”(3)”
(3) In this regard, any payment made to duly authorised government agents shall be deemed to have been made to the Federal Inland Revenue Service.”
Deletion of section 13 (3) of the Principal Act
- Delete section 13 (3) of the Principal Act.
Amendment of 15
- Substitute for the figure “16”, the figure “15” in section 15 of the Principal Act.
Amendment of section 16
- (1) Substitute for section “16(2)” and (3) of the Principal Act, a new section 16(2) and (3)-
“(2) A taxable person who is aggrieved by an assessment made on the person may file an objection to the Federal Inland Revenue Service.”
“(3) An appeal before the Federal inland Revenue Service shall be determined within 30 days.”
(2) Insert new section “16 (4)” and “(5)” immediately after the new section “16 (2)” and “(3)”
(4) Appeal from the decisions of the Federal Inland Revenue Service shall be made to the Tax Appeal Tribunal.
(5) An appeal from the Tax Appeal Tribunal shall be made to the Federal High Court.
Substitution for section 36
- Substitute for section 36 of the Principal Act a new section “36”–“36. Notwithstanding any formula that may be prescribed by any other law, the revenue accruing by virtue of the operation of this Act shall be distributed as follows-
(a) I5% to the Federal Government;.
(b) 50% to the State Governments and the Federal Capital Territory Abuja ; and
(c) 35% to the Local Governments.
Provided that the principal of derivation of not less than 20% shall be reflected”-in the-distribution of the allocation amongst States and local Governments as specified in sub paragraphs (b) and (c) of-this Section.
Amendment of section 42
- Insert the interpretation of the following accordingly in section 42 of the Principal Act-.
“exported service” .means “Service performed by a Nigerian resident or a Nigerian company to a person outside Nigeria:;
“imported service” means “service rendered in Nigeria by a non-resident person to a person inside Nigeria”;
“taxable person” includes “an individual or body of individuals, family, corporations sole, trustee or executor or a person who carries out in a place an economic activity a person exploiting tangible or intangible property for the purpose of obtaining income there from by way of trade or business or a person or agency of government acting in that capacity”.
Amendment of First Schedule
- The First Schedule to the Principal Act is amended-
(a) by substituting for paragraph 7, the following new paragraph “7”,
“7. Plant, machinery and goods imported for use in the export processing zone or free trade zone:
“Provided that 100 per cent production of such company is for expert otherwise tax shall accrue proportionately on the profits of the company”; and
(b) inserting a new “Part Ill” as follows-
“Part III-
zero rate goods and services
- Non-oil exports.
- Goods and services purchased by diplomats.
- Goods purchased for use in humanitarian donor funded projects.
“‘humanitarian donor funded project’ includes projects undertaken by Non-Governmental Organizations and Religious and Social Clubs or Societies recognized by law whose activity is not for profit and in the public interest.”
Appeals.
- Appeals shall be as in the Federal Inland Revenue Service Act.
Citation
- This Act may be cited as the Value Added Tax (Amendment) Act, 2007.
