Rivers State VAT Law 2021: 8 things you should know about the15-page document

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1. Section 7 of the law specified that the Rivers State Board of Internal Revenue shall administer and implement the law including the collection of VAT from all taxable persons and companies.

2. Section 8 of the law stated that taxable persons or business entities must register with the Board within six months of the commencement of the law or earlier. Failure to do so attracts N50,000 fine for the first month and N100,000 fine for subsequent months.

3. Section 9 of the law noted that non-resident companies transacting businesses in the state are also required to pay 7.5% VAT on taxable goods and services to the Board.

4. Section 15 of the law stated that taxable persons or companies are required to render an account to the Board on or before 21st day of the succeeding month of the goods and services purchased or supplied in the previous month.

5. Section 22 of the law specified that evasion of tax attracts not more than three years imprisonment or twice the amount of tax evaded

6. Section 35 clearly stated that the state government will get 70% of the total revenue that accrues from VAT while the local government where the transactions were performed will get 30%.

7. The law exempted VAT collection on goods and services including medical and pharmaceutical products, food items, books and educational materials, baby products, fertilizers and farming equipment, amongst others.

8. Wike has already assented to the Rivers State Value Added Tax Law 2021 in August after it was passed by the state House of Assembly.