.Vat is payable to the federal inland revenue service and it’s a tax that is attached to all sales and services render within the shores of Nigeria.
All business owners,traders and organization are expected to file that tax within the 1st and 21 of every month. That is your January value added tax must be paid between February 1st to February 21.
Value added tax is 5% of the goods or service you render and it must be added to the goods and filed to the firs every month.
If the price of the service you render or goods you sell is N10,000, you value added tax will be 500 and such good can be sold for 10,500. The 500 will be remitted to the firs.
What happened when you failed to file your tax.
You may not get tax clearance certificate which is very important for a business .
You will pay a fine: when you fail to file your tax in a a month, the penalty attached is 5000 and you must also pay the vat
3) your business may be shut down: some business will be shut down pending the time the required tax is paid to firs and it’s better to file your tax to firs as at when due to avoid unnecessary issues.
You can always visit the firs office closer to your for more updated information about tax and how to have a smooth operation with Firs.