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Nigeria split payment VAT e-commerce

  • May 22, 2019 | Richard Asquith

The Nigerian Federal Inland Revenue Service has revealed plans to levy VAT on e-commerce transactions via bank payment split payments. The policy change comes as an ongoing tax amnesty has failed to deliver the tax revenues expected.

Split payments is a growing popular mechanism to clampdown on VAT fraud. It requires banks, credit card companies and other payment providers to withhold the VAT element on any transaction between a consumer and e-commerce merchant. The provider then remits the VAT directly to the government. It is already in place in Argentina, and attempts to introduce a blocked VAT account version in Poland is to be launched in September 2019


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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