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Value Added Tax (Amendment) Act

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115. (
Cilitation.

,

VALUEADDED TAX(A~~NPME,NT) ACT"2O(t7

2007 ACT No.,12

AN
ACT
TOAMEND TIlEYALUEAbDED'TAX ACT
No,102, 1993 ';

AND FORRELATED MATTERS
l

A 157

1/: .
i'-
[16th
Day
ofApril, 2007] Commence-

, 11"
men!.

ENACTED
bythe National Assembly oftheFed~ral Republic OfNig~fia-

, , II". , .

1.
The Value Added TaxAct (inthis Actreferred toas "the Principal Act")
is amended asset out inthis Act.

i"1

2.'StIbS1itutefoT thewords "VA1Office
h
thewordS ''1'ttx'Office'' wherever
they occur inthe Principal AC,t:.

3.
Substitute forsection
4
of the Principal Actanew section
"4"-

"Rate oftax 4.The taxshal becomputed atthe rate of'S percent onthe value
of all gMd§ andservices asdetermined, undersections 5'at1d'6QfthisAct, except
, that

. iOQ~S,
andserv!c;¥,S .listedunder PartIIIofthe.FirstScheduleto thisAct shall be
taxed atzero rate."

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4.~~~titllt~fqr,*e ~ord"~ill'(.t~e
)rorp~
"th~person" insection10(1) of
the Principal Act. ,,'
'k
i ••"

. 5"Se(;tion 10Aof thelrinci~1 Actis.l¥Tl~[ldedby-
(a) inserting immediately aftertheexisting subsection
(1),
thefollowing new
subse,~.tiqr::(~)"–r- ..",'
0"
r

"(2)
TheService may,bynotice, determine anddirect
the
companies
operating,ip the(i)~,~and.gas.sector which.shalldefluctVAT atsource and
remit sametothe Service" ;and …
(b) renumbering theexisting subsection
"(7)"
assubsection
"(3)".

. ..••.' .' "" '.' .'I'
,f',:,:,;::"

6.
Insert thefolowing newsection lAimmediately aftertheexisting section

II
ofthe Principal Act–; "
"Tax invoice
II
A(I) Ataxable personwhomakes ataxable supply
shall,
in
respect ofthat supply, furnishthepurchaser withataxinvoice containing, inter
alia, thefoUowing.— '•.
i

: . ,;. " .,'" "'"I! ~,', ;

(a) tax payers identification number;'
(b) name andaddress;

j'I"'l'

(c) VAT registration number;,.
, (d) th~ date
'Of
~uppiy ;"
( e) name ofpurchaser orclient;
;i..;.
J)',

😉
,Ij",
Amendment
of Act No.
102 of1993.
General amendments.
r'
Substitution
for section 4.
Amendment
of section 10.
Amendment
of section

lOA.

A158
2007No.12
ValuedAdded
Tax
(Amendment) Act
Amendment
or section 12.
Deletion of
section
13

(3).
(j)

gross amount oftransaction; and
(g) tax charged andrate applied ..
(2) Atax invoice shallbeissued onsupply whether ornot payment ismade at
the time ofsupply."
7. Section 12ofthe Principal Actisamended-
(a) insubsection (I),by substituting forthe figure andword "30th day"forthe
figure andword "21stday" ;
. (b) byinserting imediately aftersubsection (2),thefollowing newsubsection

"(3)" ~

"(3) Inthis regard, anypayment madetoduly authorised government agents
shall bedeemed tohave been made tothe Federal InlandRevenue Service."
8. Delete section 13(3) ofthe Principal Act.

Amendment .
9. Substitute forthe figure" 16",thefigure" 15"insection 15ofthe Principal
or section 15.Act.

Amendment

o I' section 16. 10.
(I)Substitute forsection" 16
(2)"
and(3)ofthe Principal Act,anew section
16(2)and(3)-

""(2)
Ataxable personwhoisaggrieved byanassessment madeonthe person
may fileanobjection tothe Federal InlandRevenue Service.
(3) An appeal beforetheFederal hilandRevenue Serviceshallbedetermined
within 30days."
(2) Insert newsection "16(4)" and"(5)" immediately afterthenew section 16
"(2)" and."(3)"-
(4)Appeal fromthedecisions ofthe Fed~rallnland RevenueServiceshallbe
made tothe Tax Appeal Tribunal.
(5) An appeal fromtheTax Appeal Tribunal shallbemade tothe Federal High
Court."
Substitution II.Substitute forsection 36ofthe Principal Actanew section "36"-

/01'
section '
36.
Distribution "36.Notwithstanding anyformula thatmay beprescribed byany other law,
or revenue. therevenue accruing byvirture oftheoperation ofthis Act shall bedistributed as
follows- … .
(a) I~% tothe Federal Government;.
(b) 50% tothe State Governments andtheFederal CapitalTerritory Abuja;and
(c) 35% tothe Local Governments.

ValuedAdded Tax(Amendment) Act
2007No.12
AI59

~. f .
t~

Pr6vl<:te:"ag~~son explojtin!?ita~gib~e;~~ iNan~i~lepropertyforthepu~ose
of obtainin gincome therefromby way0,ftradeot'buslhess or
a
persoti"orlige"by of
governmentacting inthat capacity ;"~.
'I! .,'"'…

13.
The First.Schedule tothe Principal Actisamended-
(a) bysubstituting forparagraph 7,the following newparagraph "7"
"7. Plant, machinery andgoods imported foruse inthe export processing zone
or free trade zone :
Provided that100percent production ofsuch company isfor expert otherwise
tax shalt accrue proportionately onthe profits ofthe company" ;and
(b) inserting anew "Part Ill"asfoltows-
"Part III-zero rategoods andservices
I. Non-oil exports.
2. Goods andservices purchased bydiplomats.
3. Goods purchased foruse inhumanitarian donorfunded projects."
'humanitarian donorfunded project' includes projectsundertaken byNon-
Governmental OrganizationsandReligious andSocial ClubsorSocieties recognized
by law whose activity isnot forprofit andinthe public interest."
14. Appeals shallbeasinthe Federal InlandRevenue ServiceAct.
15. This Actmay becited asthe Value Added Tax(Amendment) Act,2007. .
Amendment
of First
Schedule.
Appeals.
Citation.

A160
2007No.12 Valued
Added Tax(Amendment) Act
I Certify, inaccordance withSection 2(1) ofthe Acts Authentification Act,
Cap. 4,Laws ofthe Federation ofNigeria 1990,thatthisisatrue copy ofthe Bill
passed byboth Houses ofthe National Assembly,
NASIRUIBRAHIM ARAB,
Clerk to.the National Asembly
16th DayofApril. 2007.
EXI'LANATORY MEMORANDUM

: "',,'j

ThisActamends theValueAdded TaxNo.102,J 993and, among otherthings,
makes itmore responsive tothe tax reform policies ofthe Federal Government and
enhance itsimplementation andeffectiveness.

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SCHEl>lILETOVALUE ADDED TAX(AMENDMENT)
BILL.
2007

(I)
(2,
(.1)

(-I)

(5)

Short title
fI(
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titl«
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SI/lIIII/(IiT
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0011'
I'lls.'etll,,· Dau:IhlSsl'd
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the Hill Hill
('III/I< 'IIIs ot th« Bill thcScnat« tlu:tloir«: lIt Rel're.lelllillil·l's Value Added Tax AnAct to amend theThis Billsecks roumcnd the Value (Amendment) Bill. ValueAddcd Ta :. 102. Added TaxAct. andamong other 20th February. 2007. 21st February, 2007. 2007, 1993 : and forrelated things.makeitmore responsive to the taxreform policies ofthe Federal . matters. Governmentandenhance its implementation andeffectiveness. I certify thatthisBillhas true andcorrect decision 0 f Federation ofNigeria. 1990.been carefully compared byme with thedecision reachedbythe National Assembly andfound byme tohe the Houses andisin accordance withtheprovisions ofthe Acts Authentication ActCap, -I.Laws {)f the I Assnxr, N.sIHI· IIlH,IfIM AH,U Clerk 10tlu: National Assembty 161h DavotApril. 2007 CIIIIT OI.I.SH'I. OH.Sx,JO, (iC!·H President o(the Federal Republic of'Nigeria 161h Dav or April, 2007

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