FIRS targets massive taxpayer companies for pilot part of latest e-invoicing system
The Federal Inland Income Service (FIRS) has commenced stakeholders’ engagement forward of the pilot part rollout of its e-invoicing resolution, aimed toward enhancing tax administration and compliance in Nigeria.
Whereas kicking off the engagement marketing campaign with a convention in Lagos, the service disclosed that implementation of the pilot part will begin with massive taxpayers who conduct thousands and thousands of transactions every day or weekly.
FIRS engaged stakeholders in varied sectors of the financial system, together with oil and fuel, banking, manufacturing, and providers, amongst others.
Coordinating Administrators of departments within the FIRS defined the intricacies of the e-invoicing system to the individuals and addressed their issues and questions.
The Coordinating Director, of Massive Taxpayer Group, Amina Ado, who delivered the welcome tackle stated the system aligns with worldwide requirements as it will guarantee tax compliance and cut back tax income leakages for the federal government.
“The e-invoicing system is not only a technological innovation, however a strategic enabler that aligns with worldwide finest practices, making certain seamless tax compliance, lowering income leakages, and enhancing the convenience of doing enterprise in Nigeria,” she stated.
Ado, who was represented by Olatunji Olabode, the Director of Massive Taxpayer, Telecoms & Finance, disclosed that the implementation of the e-invoicing resolution will begin with massive taxpayers
“FRS plans to start the implementation of the pilot part of this resolution, with chosen massive taxpayers,” she added.
FIRS guarantees straightforward adoption for Nigerian companies
The service engaged stakeholders, significantly massive taxpayers who’ve issues in regards to the implementation of the system.
Stakeholders from the manufacturing sector expressed concern over returned stocks whose invoices would have already been documented within the e-invoicing system of the FIRS.
Stakeholders within the oil and fuel sector raised issues in regards to the issue in invoicing a number of retails which can be paid for with money and should not tracked instantly.
Mike Adoga, who heads the tax automation division in FIRS defined that tax submitting doesn’t have an effect on accounting and the system is constructed with consideration for such peculiarities.
“The invoices could be inputted in real-time or close to real-time.” “We’re nonetheless getting suggestions and studying,” he added.
Concerning the e-invoicing resolution
The e-invoicing resolution is an accounting system that may be put in on PCs, telephones, tablets, and cloud-based platforms to generate digital invoices with tax parts that may be tracked and documented for tax administration.
- The tax parts which can be included within the e-invoicing for each B2B and B2C transactions embrace bill quantity, items or providers description, relevant taxes (reminiscent of VAT), tax charges, and quantity payable, amongst others.
- The e-invoicing resolution can be built-in with the FIRS system by way of a licensed entry level supplier to facilitate the alternate of invoices and different vital information.
- It additionally supplies for an Bill Reference Quantity (IRN), a novel identification quantity assigned to every quantity that makes it potential for a purchaser, vendor, tax supervisor, or {bank} to hint the authenticity of the bill anytime and wherever.
It makes it potential for the federal government to maintain observe of tax compliance and submitting as invoices are generated electronically from the central system in real-time or close to real-time.