New Value Added Tax Obligation on Consumers : Examining the Reverse Charge Mechanism in the Finance Act, 2019
The article reviews the Reverse Charge Mechanism (“RCM”) regime in Nigeria introduced by the Finance Act 2019 and its effect on the general consumers to whom it applies and the suppliers of taxable goods and services. Although not entirely new, the current regime of RCM is a milestone on Nigerian VAT enforcement efforts. First, it finally resolved the raging controversies on the application of RCM to services supplied to a Nigerian resident by a non-resident. Second, it extended RCM beyond cross-border transactions and oil and gas sector. Like the RCM regime for imported services, but unlike that of oil and gas operators, the operation of the current regime of RCM will be triggered only upon the failure of the supplies to charges VAT on the invoice of taxable goods and services forwarded to the consumer. The reading of the statute shows that only consumers qualifying as taxable person under the current law will incur most of the liabilities in the existing law, although all consumers may well be liable for tax evasion. The performance by the consumer of its obligation under the new RCM regime will discharge the supplier's VAT remittance liability, including the penalty for the failure to render VAT returns. The RCM could not have come at a better time for country battling revenue crunch and laxity/slack in tax compliance
Year of publication: |
2020
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Authors: | Arubike, Chima |
Publisher: |
[2020]: [S.l.] : SSRN |
Subject: | Umsatzsteuer | Sales tax | Großbritannien | United Kingdom |
Saved in:
freely available
Extent: | 1 Online-Ressource (10 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 28, 2020 erstellt |
Other identifiers: | 10.2139/ssrn.3662361 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012827082
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