National Telescope national telescope newspaper
The Federal Inland Revenue Service (FIRS) says from September 1, 2023, 7.5 percent value added tax (VAT) will be charged on items excluded from building.
The revenue agency announced the development in a public notice released on Friday and signed by Muhammad Nami, its executive chairman.
According to FIRS, examples of items excluded from building are radio and television masts, transmission lines, cell towers, mobile homes, caravans and trailers.
The commission said the provision is contained in the Finance Act 2023 which had an commencement date of May 1 but was later deferred to September 1.
“The definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land,” the notice reads.
“As such, all the items removed from the definition of land have become chargeable to VAT. Companies letting, trading in or providing services with such items must charge VAT at the prevailing rate with effect from 1st of September, 2023.”
FIRS also said Section 14(3) of the VAT Act was amended to the effect that persons appointed to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which the VAT was withheld or collected.
“Consequently, all VAT withheld or collected in August 2023 shall be remitted to FIRS on or before the 14th of September 2023,” the notice reads.
“Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than 14th day of the month following that in which the VAT was withheld or collected.”
The commission said the rate of tertiary education tax (TET) was changed to three percent of assessable profits.
“The new TET rate of 3% shall take effect for TET becoming due in respect of accounting period ending on or after 1st September, 2023,” the FIRS said.
On investment allowances and convertible currencies, the FIRS said sections 32, 34 and 37 of the Companies Income Tax Act (CITA) granting allowances in respect of capital expenditure incurred in certain circumstances, and tax exemption on income earned in convertible currencies from tourists by hotels have been repealed.
This, the commission said, means that the said allowances and tax exemption are no longer available for tax returns becoming due in respect of accounting period ending on or after September 1, 2023.
(Cable News)
