Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial Tax System
Services Industry
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Importation of Goods
Exportation of Goods
Auditing Requirements
COVID-19 - Economic
and Fiscal Measures
5.4.3
Definition of Goods and Services
All exported services;
5.4.4
5.4.5
Finance Act, 2020 defines "goods" as "all forms of tangible properties,
move able or immovable, but does not include, land and building money,
or securities" while "services" are defined as "anything other than goods,
or services provided under a contract of employment and includes any
tangible or incorporeal (product, asset or property) over which a person has
ownership or rights, or from which he derives benefits, and which can be
transferred from one person to another, excluding interest and land and
building, money or security"
Taxable Persons
A taxable person is defined as a manufacturer, wholesaler, importer or
a supplier of VATable goods or services for a consideration. Previously,
Section 8 of the VAT Act provides that a taxable person shall register
at the earlier of the date of its commencement of business or the
commencement of the Act. However, this has been amended to require
taxable persons to register with the FIRS upon commencement of
business. This aligns with the current practice whereby taxpayers are
registered for taxes (including VAT) following incorporation at the Corporate
Affairs Commission.
Tax Exempt Goods and Services
The VAT Act covers the supply of goods and services (i.e., almost all
business transactions) except goods and services specifically exempted in
the Schedule to the Act. Such exempted goods and services include:
All medical and pharmaceutical products;
.
Basic food items;
• Books and educational materials;
● Baby products;
•
Plant and machinery imported for use in the Export Processing Zone;
Plant, machinery and equipment purchased for utilisation of gas in
downstream petroleum operations;
Tractors, ploughs, agricultural equipment and implements purchased for
agricultural purposes.
• Medical services;
•
Services rendered by Microfinance Banks, People's Bank and Mortgage
Institutions;
Investment in Nigeria Guide - 8th Edition
5.4.6
•
Oil exports;
•
Fertiliser, locally produced agricultural and veterinary medicine, farming
machinery and farming transportation equipment;
• Locally manufactured sanitary towels, pads or tampons; and
• Nursery, primary, secondary and tertiary tuition.
•
·
•
Commercial aircrafts, commercial aircraft engines, commercial aircraft
spare parts;
Airline transportation tickets issued and sold by commercial airlines
registered in Nigeria;
Hire, rental or lease of tractors, ploughs and other agricultural
equipment for agricultural purposes; and
• Sale or transfer of interest in land and building, money or securities.
In December 2011, the Federal Government issued an Order which
exempts the following items from VAT effective from 2 January 2012:
(a) proceeds from the disposal of short-term Federal Government of Nigeria
securities and bonds; and
(b) proceeds from the disposal of short-term State, Local Government and
corporate bonds (including supra-national bonds).
The VAT exemption for the proceeds of bonds in (b) above will lapse after a
term of 10 years. However, there is no timeline for proceeds from short-
term Federal Government securities and bonds.
Zero-rated Goods and Services
The following goods and services are zero-rated:
• Non-oil exports.
•
Goods and services purchased by diplomats.
•
Goods purchased for use in humanitarian donor funded projects.
KPMG
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