FIRS Updates TaxPro-Max Module On VAT Filing And Payment

The Federal Inland Revenue Service (FIRS) recently made updates to the features for value added tax (VAT) filing and payment module on the TaxPro-Max (TPM or "the platform").

One significant change is the introduction of an input VAT credit mechanism, which requires suppliers to remit VAT collected from customers to the FIRS using a new sales schedule format for the customers to claim the allowable input VAT on such purchases. The new monthly sales schedule includes additional information, which should be uploaded to the TPM, such as customers tax identification numbers (TINs), description of items sold and status of the items for VAT purpose (i.e., VATable, zero-rated or exempt). Remarkably, where the supplier does not know a customer's TIN and fails to enter zero in the relevant cell, the customer will NOT be able to claim the input VAT.