FIRS Introduces Automated VAT Filing & Collection System (Updated)

The Federal Inland Revenue Service ("FIRS") has automated its Value Added Tax ("VAT") filing and collection system. In a public notice recently issued by the FIRS informing taxpayers of the automation, the FIRS stated that the automated VAT collection system is to ensure an efficient and seamless collection of the remittance of VAT on all vatable transactions in the wholesale/retail sector and enable direct/reconciliation of all VAT transactions. The automated VAT collection system applies to the following businesses:

• Branded shops;
• Superstores;
• General supermarkets;
• Standard restaurants; and

The effective date of operation of the Automated VAT Platform ("VATrac") will be from Wednesday, 1^st April 2020 (the "Effective Date"). This means the affected businesses have less than 2 (two) weeks to comply with this notice. The VATrac will, thus, become the approved channel for VAT returns filing and payment processing. Businesses in the above categories are