The Prospects, Problems And Contributions Of Value Added Tax (VAT) To Nigeria Economy

Project and Seminar Material for Accountancy / Accounting

Project and Seminar Material for Accountancy / Accounting


Chapter One


1.0 Introduction

The implementation of Value Added Tax (VAT) in Nigeria started on 1st January, 1994. VAT is a tax on consumption. it is suffered when a person ingest goods and services. The enabling Act is the value added tax act 102 of 1993 (VATA 1993).

Before the final introduction of the VAT in January 1994, the idea of introduction VAT in Nigeria came from the report of the study group set up by the Federal Government in 1991 to review the entire Tax system. VAT was proposed and a committee was tax set up to carry out feasibility studies on its implementation. And since introduction, VAT has yielded great revenue to the purse of the government.


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