Further to the enactment of the Finance Act 2019, the Federal Government has announced that the implementation of the 7.5% Value Added Tax (VAT) rate under the new Finance Act will commence on 1st February 2020.
In line with the Federal Government directives, please be informed that VAT on each eligible bank transaction or service will be charged at the new rate of 7.5% with effect from 1st February 2020.
Below are highlights of the key changes:
- Item: Value added Tax, Old act provision: 5%, New act provision 7.5%
- Item: Tax Identification Number (TIN), Old act provision: not applicable, New act provision: Required to open and operate a bank account for business purposes