Overview

The Value Added Tax Act 1993 (No. 102) is a Nigerian law that imposes and regulates a value-added tax (VAT) on certain goods and services. The Act is structured into six parts and includes two schedules. Part I establishes the tax, defines taxable goods and services (excluding those in the First Schedule), sets the tax rate at 5% on value, and provides for valuation methods. Part II covers administration, including the roles of tax authorities, registration requirements for businesses, government ministries, and non-resident companies, and record-keeping obligations. Part III details returns, remittances, recovery, and refund of tax, including payment by taxable persons, remission of tax by government entities, allowable input tax credits, and consequences for non-compliance. Part IV establishes a Value Added Tax Technical Committee to advise on tax matters. Part V lists offences and penalties, including fines and imprisonment for evasion, failure to register, or failure to keep proper records. Part VI provides miscellaneous provisions, such as the Minister's power to amend schedules, inspection powers, revenue distribution rules, appointment of agents, regulations, and interpretation. The Act repeals previous sales tax laws and commenced on 1 December 1993. It is a key legislative framework for VAT administration in Nigeria.

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