FG Plans to Deduct 5% VAT for Every Online Transaction via Bank Cards

For every online transaction you make via bank cards from next year, 5% VAT will be deducted.

This assertion was made by the Chairman of Federal Inland Revenue Service  (FIRS) in an interview with Premium Times Newspaper  on Monday.

Fowler said the country is currently working on a solution for taxing the digital economy.

“We will address the issue of the digitalised economy very soon. There is no global solution to a digitalised economy.

“Different countries have taken different solutions to address the problem. Nigeria has not taken a position yet. But, we are meeting to see if we can come up with a global solution that we can all adapt to,” Breaking Times quoted the FIRS Chairman as saying.

Nigerian government projected digital economy to generate $88 billion and create up to three million jobs in the next three years.

The former minister of Industry, Trade, and Investment, Dr. Okey Enelamah, during a US roadshow last year said the Nigerian government is resolute in creating an enabling environment where digital economy opportunities are not just theoretical but become real.

The FIRS boss said the tax agency will make use of Nigerian banks as an agent in achieving the 5% value-added tax.

Analyst says the digital economy may impact tax revenue in 2019