The Finance bill was signed into law by President Muhammadu Buhari. This gave rise to Finance Act 2019. Its purpose is to reform our existing tax laws as well as supporting small and medium scale enterprises by reducing their tax burden and increase revenue for the government. See highlights of the Finance Act 2019 below;
• increase in Value added tax from 5% to 7.5%
• introduction of a N25 million VAT compliance threshold
• Banks to request for Tax identification number(TIN) before opening business/corporate accounts.
• existing account holders to provide TIN to continue to operate their accounts
• legalized the charge of N50 on electronic receipts or electronic transfers made to any bank on transactions in excess of N10,000 and above
In view of the above, our VAT rate has been revised to 7.5% in line with the act. We remain committed to giving you a better future.