Lottery, Gaming Activities Now To Attract 5% VAT
The Federal Government has concluded plans to charge Value Added Tax (VAT) on lottery and gaming activities.
This was made public in Lagos at a stakeholders’ engagement session with lottery and gaming operators.
The session, organised by the Federal Inland Revenue Service (FIRS) in conjunction with the National Regulatory Commission (NLRC), had in attendance top brass of the revenue agency, led by FIRS Chairman, Mr. Tunde Fowler; Mr. Lanre Gbajabiamila, NLRC Director-General; representative of the Senate Committee Chairmen on Sports, representative of the Chairman, House Committee on Governmental Affairs; and industry operators.
The plan will see users of the services provided by the industry paying five per cent VAT on each transaction made.
Speaking at the session, the NLRC boss stated that lottery and gaming operators collect VAT from users of the industry’s services without remitting such to the government, a situation that results in revenue losses.
The session also noted that betting slips issued to consumers do not indicate VAT as they should.
A presentation made at the session by Zurich Technologies, provider of the automated software solution for VAT collection, showed that the process would be made electronically in a way that computes the VAT payable by consumers on each operator’s platform by aggregating transactions for a 21-day period and the operator is given a bill for the VAT payable.
The bill is then settled through the online platform, as the software allows operators to file VAT returns and is flexible enough to accommodate