NCC, FIRS Sign MoU To Determine VAT Elements Of Telcos’ Transactions

The Nigerian Communications Commission (NCC) has signed a Memorandum of Understanding (MoU) with the Federal Inland Revenue Service(FIRS) to determine the completeness and accuracy of VAT elements in telecoms transactions.

The NCC said on Tuesday that with the new arrangement,  the “FIRS will be able to integrate an application programming interface (API) technology solution with the systems of telecom Operators for independent verification of the amount of VAT that should be paid by mobile network operators (MNO) rather than relying entirely on the Operators’ books of accounts.”

The Executive Vice Chairman of the NCC, Umar Danbatta, said, “Our concern, as Regulator of the telecoms industry, is that we needed to be sure that it is not another way to tax telecoms operators, who are already dealing with multiple taxation issues.

“We have also ensured that the integration of the solutions with telcos’ transactions systems will not, in any way, impact the cost and quality of service delivery by the Operators to telecoms consumers.”

He however assured telecom consumers and stakeholders that the integration of FIRS solution would not degrade the quality of service delivery or inflate the cost of service to telco customers.

The Executive Chairman and Chief Executive Officer, FIRS, Muhammad Nami, assured that the new tax method would foster  transparency and completeness of tax transactions of mobile service providers to the Federal Government as a result of transition from physical businesses to electronic-based business activities.

“The API, which was developed in-house, is transaction-based and all we are trying to do is to ensure we have the basis for determining the completeness and accuracy of VAT elements in telecom transactions,” he said.