The Federal Inland Revenue Service (FIRS) has unveiled plans to introduce an e-invoice system, revolutionizing the management of invoices for Business-to-Business, Business-to-Consumer, and Business-to-Government transactions.
This digital solution is expected to facilitate real-time transaction validation and storage.
Executive Chairman of FIRS, Dr. Zacch Adedeji, announced this development at the Lagos Chambers of Commerce and Industry’s private sector stakeholders’ engagement.
He emphasized the importance of embracing reform, leveraging technology, and ensuring transparency to develop a tax system supporting sustainable growth and equitable development.
Adedeji further noted that the e-invoice system aligns with the Tax Administration and Enforcement Act 2007 adding that it will enhance tax compliance, reduce errors, and increase efficiency.
FIRS aims to streamline operations, decentralize key functions, and address long-standing challenges.
Some notable achievements include: creation of three operational groups (Small/Emerging Tax, Medium, and Large Tax) to cater to taxpayer needs, establishment of a One-Stop-Shop for tax office and audit functions
Development of Taxpro Max for online tax services and robust data management division for accurate assessments and strategic planning.
The FIRS has restated its committment to taxpayer education and public awareness. Initiatives like Tax Thursdays and sensitization exercises in schools aim to enhance public understanding of tax.
Nigeria’s tax system is undergoing significant reforms to address emerging issues.
The Presidential Fiscal Policy and Tax Reforms Committee is driving these changes. Key reforms include:
Simplifying the tax system, broadening the tax base, ensuring fairer distribution of tax responsibilities, addressing digital economy challenges and implementing new tax policies for digital services.
The recent changes aim to increase revenue, improve compliance, and promote equitable economic practices.
Tax incentives, such as zero percent VAT rate on Feed Gas, encourage investment and economic growth.
The FIRS encourages constructive feedback and collaboration to build a stronger, more resilient economy.
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