REVIEW OF THE CASE FACTS AND LESSONS FOR TAX AUTHORITIES VAT - AG. RIVERS V. FIRS AND PENDING SUIT ON STAMP DUTY & AG ABIA STATE & 35 ORS V. AG FEDERATION EXAMINED

Abstract

VAT was introduced in 1993 to replace Sales Tax and came into force in 1994. Currently, VAT is administered by FIRS on behalf of the Federal Government and shared amongst the three tiers of government. Sharing formula is 15%, 50% and 35% amongst Federal, States and Local Governments respectively. In 2020, VAT emerged as the fastest growing tax revenue type with a total of ₦1.53 trillion Of the total amount generated, 51% was derived from import and international services. Five highest grossing states from VAT on local supplies are Lagos – 50.5%, FCT – 13.2%, Oyo – 2.9%, Rivers – 2.7% and Kano – 1.4%.