15 Jun FIRS – Deduction of Value Added Tax (VAT) at Source by Companies Operating in the Oil & Gas Industry.
On the 12th of June 2020, The Federal Inland Revenue Services (FIRS) issued a reminder notice to companies operating in the Oil & Gas Industry to deduct VAT at source from the invoices of their contractors/suppliers and remit same to FIRS in a separate returns using VAT Form 002A.
The federal tax authority has earlier issued information circular 02/2007 to the companies in the Oil & Gas industry appointing them as VAT agents for this purpose. The affected companies are those engaging in:
- Upstream operations.
- Downstream operation.
- Oil serving companies.
- Any other business operation in the upstream, mid-stream or downstream oil and gas section.
In this latest public notice, FIRS confirmed that its information circular 02/2007 is still subsist and threaten to sanction non-complying companies.