The Federal Inland Revenue Service (FIRS) has provided updates on the implementation of the input value-added tax (VAT) filing procedures via its administration solution, TaxPro-Max.
TaxPro-Max enables seamless registration, filing, payment of taxes, and automatic credit of withholding tax as well as other credits to the taxpayer’s accounts among other features.
Input VAT is the value-added tax on the price paid for eligible goods or services. Firms that are VAT-registered can charge and add VAT to the value of goods and services they supply.
Providing guidelines on VAT filing processes on the TaxPro-Max platform in a statement at the weekend, FIRS said “taxpayers are to file their April 2023 returns, in May 2023 as normal. All the disabled columns will be opened [and] the auto credit for purchases will be disabled”.
The service said from June 1, 2023, taxpayers claiming input VAT for purchases should upload a purchase schedule; while those claiming input VAT for withholding VAT (WVAT) were asked to upload a WVAT schedule.
WVAT is a method of collecting VAT where a portion of the VAT is collected by appointed withholding VAT agents from payments made to a local supplier of vatable goods and services schedule.
FIRS also directed businesses claiming input VAT for imports to upload a purchase imports schedule, while also providing steps on how all input VAT claims from June 1, 2023, can be applied for.
“For illustration purposes, June 1 to June 30 transactions are treated as month one,” FIRS said.
“The month following the month of transactions, in our example, using the month of June, will be July 1 to July 21 at midnight: file returns of month one transactions.
“The month following the monthly VAT returns were filed, in our example, using the month of July, this will be, August 1 to August 31: the input VAT claims that TaxPro MAX is not able to verify, validate and cross-check online, are manually traced, using the data entered by the taxpayer when filing.”