Millions of Nigerians may be unaware of this vital piece of information concerning day to day fraudulent transactions mostly in supermarkets and mega stores where a receipt printout is generated after purchases and VAT is charged even on baby things.
In the list presented here, baby items, food items and lots of other goods are actually exempted from VAT!
According to the Federal Inland Revenue Service (FIRS), ”as part of the enlightenment campaign to keep educating members of the public on their rights and obligations under the VAT Decree No 102 of 1993, the Federal Inland Revenue Service has carried out a comprehensive review of the existing List of Goods and SERVICES Exempted from VAT. The review has become necessary partly because of the problems being experienced by importers of goods at the poor as well as the urgent need to bring together all the budget pronouncements made by government as they affect VAT since the commencement of the scheme in 1994.
For the avoidance of doubt, all collection agencies are advised to restrict themselves to this amended list of exempted items. Consequently, no request for special concession or exemption will be entertained by the FIRS henceforth. It is however envisaged that the list will continue to be subjected to periodic review in line with the existing government budget pronouncements.
In this connection, all registered persons are enjoined to display this new list conspicuously in their places of business to educate their customers. All items not included in this published list are vatable at the standard rate of 5%, except in the case of exports where the rate is 0%”.