FIRS clarifies VAT charges on ATM transactions, WhatsApp

.As FG slashes revenue projections for relevant agencies

The Federal Inland Revenue Service has clarified on the recent announcement regarding charges on Automated Teller Machine (ATM) transactions as well as WhatsApp messages.

Speaking to Daily Times, the Director  Communications department of the FIRS, Abdullahi Ismaila Ahmad said details of the planned charges are still being worked out. 

He said the Service remains committed in raking in revenue on behalf of the federal government which can be utilized in funding critical Infrastructure projects in the country. 

However, Ahmed quoted the Coordinating Director Tax Operation Group (DTOG) of the Federal Inland Revenue Service (FIRS),  Mr. Olufemi Oluwaniyi saying that Value Added Tax (VAT) is a charge on all electronic transactions and the Service will explore every means to generate revenue through adoption of digital platforms. 

“VAT is chargeable on every digital/electronic service.They’re not in any way exempt. We even feel we’ve not fully exploited our potentials in that regard largely due to issues around technological capabilities. We’re working hard on that now.”  Oluwaniyi said.

Recently, The Federal Inland Revenue Service (FIRS) says it is working out plans to ensure that Nigerians will pay stamp duties on WhatsApp messages, SMS, and messages via any electronic platform acknowledging receipt of funds.

The FIRS, accordingly also stated that stamp duties would be paid on “POS receipts, fiscalised device receipts, Automated Teller Machine (ATM) print-outs”.

According to a circular published by the agency, Nigerians will also be required to pay stamp duties on SMS acknowledging receipt of funds.

The FIRS added that “All electronic dutiable instruments or receipts”, including e-mails, short message service (SMS), instant messages (IM), any internet-based messaging service, are subject to stamp duty,”.

Also, the circular issued by the revenue-generating agency suggest that “all printed receipts” and “all electronically generated receipts and any form of electronic acknowledgement of money for dutiable transactions” are bound to duty payment.

Earlier this year, the Service has set a revenue target of N8.55 trillion for the 2020 fiscal year.

The Service also reiterated its commitment to achieving that target despite the ravaging Coronavirus pandemic on businesses.

However, Minister of Finance,  Budget and National Planning, Mrs Zainab Ahmed, in a recent meeting with Senate Committee officials on finance, stated that targeted revenues from all the relevant agencies have been drastically slashed in the new revised Medium Term Expenditure Framework in line with current realities.

The minister in different fora has explained that the federal government will only set revenue projections that are in line with the current economic realities caused by the Coronavirus pandemic.