The Federal Inland Revenue Service (FIRS) has entered into a partnership with the Market Traders Association of Nigeria (MATAN) in a bid to streamline the collection of value-added tax (VAT) from its members, particularly those in the informal sector.
The collaboration, known as the VAT direct initiative (VDI), utilized a unified systems technology for seamless integration.
MATAN, established in 1995, represents various trading associations across Nigeria and stands as the leading voice in the country’s market space, boasting a membership of over 40 million traders nationwide.
FIRS explained that the VDI, the first program of its kind, employs advanced technology to facilitate cooperation between the agency and the marketplace for the collection and remittance of VAT.
Through the initiative, MATAN is tasked with raising awareness on VAT collection and remittance in the marketplace and informal sector while providing a simplified digital platform for VAT payment and remittance.
The statement released by the FIRS reads: “MATAN has implemented a digital platform that assigns a unique digital ID to its members, enabling the tracking of their turnover and ensuring the collection and remittance of accrued VAT to FIRS.”
Additionally, FIRS emphasized that this partnership would combat the issue of multiple taxations in the marketplace by collaborating with security agencies”to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.”
The VDI not only aims to streamline VAT revenue generation for all levels of government but also promises to channel additional funds towards infrastructure development, provision of social amenities, and the overall welfare of citizens.