Value Added Tax is a tax imposed on buying and selling goods and service. It is also called consumption tax.VAT is borne by the final consumer but are collected at each stage of production and distribution(I.e wholesale and retail).In Nigeria, the chargeable rate on VAT is 5% of the Value of the taxable goods and services. It is governed by the Value Added Tax Act.

This paper is to discuss,the timing of VAT Registration and the basis questions to be considered are who is expected by Law to register, when is the registration supposed to take place,who is in charge of registration of VAT procedure to registering
Pursuant to section 8 of the Value Added Tax Act,it provide that every business must register for VAT with the FIRS within 6 months of commencement of business.Therefore,the civil responsibility to register under the Law is imposed on manufactures,suppliers of goods and services which are not exempted by the Value Added Tax.
For registration, there are certain document required for such registration. For companies,it requires:

  • Memorandum of association
  • Certificate of incorporation
  • Application letter on company letter headed paper
  • Utility bill
  • Duly filled and officially stamped VAT form.

For registered business, the requirements include:

  • Business name registration Certificate.
  • Utility Bill
  • Duly filled and officially stamped VAT form
  • Application letter on business letterhead paper.

There are certain goods which are exempted from V.A.T. and persons dealing with such goods and services are not expected to register for V.A.T.

Exempted goods are contain in Part 1&2 of the First schedule of the V.A.T Act. They include:

  • Basic food items
  • Books and educational materials
  • Baby products.
  • Newspaper and magazine
  • Medical and pharmaceutical products
  • Commercial vehicle and their spare parts.
  • Agricultural equipment and product and veterinary medicine.

The exempted services include:

  • Medical services
  • Services rendered by community banks,peoples bank and mortgage institutions.
  • Plays and performance conducted by educational institutions as part of learning.

The rule of registration also apply to foreign company.For foreign companies or persons,it has to register once it commence business in Nigeria.The foreign companies register with the address of the consumer of the goods and services as it's address for the purposes of correspondence.
In conclusion,It is an offense not to register with FIRS for Value Added Tax and it's punishable by Law.