According to a report by Africa Tax Review, an online platform covering tax reports on the African continent, MTN Nigeria Communications Plc (MTNN) will commence the withholding of VAT due Nigeria’s apex tax authority, the Federal Inland Revenue Service (FIRS), as from 1st January, 2023. This development is in accordance with Section 14(3) of the Value Added Tax Act.
This means that MTN Nigeria is now a VAT deduction agent for the FIRS. Africa Tax Review noted that the Telco company would now withhold VAT on all the jobs it awards to its contractors, and remit same to the FIRS. Also, in order to ensure a transparent and accountable system of remittance, MTN is to monthly forward its schedule, detailing all relevant contractors and transactions. It is believed by the FIRS that this VAT withholding by MTN Nigeria would make tax collection and remittance more efficient.
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