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The VAT Direct Initiative
Did you know that the FIRS – MATAN Partnership takes into account the following exemptions?
1. Any business that has an annual turnover that falls below N25 million is exempt from registering or charging Value Added Tax (VAT).
2. Traders in VAT-Exempt Goods including medical and pharmaceutical products, basic food items, educational books and materials, baby products, fertilisers, locally produced animal feeds, locally produced sanitary towels, pads or tampons as well as agricultural seeds and seedlings are not expected to charge nor remit VAT under the VAT Direct Initiative.
3. VAT-Exempt Services such as medical services; services rendered by Micro-Finance Banks and Mortgage Institutions; Plays and Performances conducted by educational institutions as part of learning; tuition relating to nursery, primary, secondary and tertiary education; hiring or rental of tractors, ploughs and other agricultural equipment for agricultural purposes; as well as shared passengers and road transport services are not under the VAT Direct Initiative.
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