Tax Payers Perception On Value Added Tax System In Nigeria

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This work was aimed at evaluating tax payer’s perception on value added tax system in Nigeria in 1993.  The federal government promulgated a decree in respect of the introduction of VAT which is a tax on the consumption of good and services.  This was in view of the remedies benefits which could be divided from the exercise.

Prior to the introduction for vat sales tax system was in operation but tax expected see it as being to narrow and was also unable to generate the expected reverse government.  This also led to the need for an alternative tax system vat.

However, also these above and the views of the government the researcher finds it necessary to evaluate the opinions of the payers who are the incidence bears of vat in order to make a comparative analysis.

The two hypotheses were all in favour of vat pouring that vat is fair and equitable system and it is perceived to favour tax payers.







Title page

Approval page




Table of contents



1.0            Introduction

1.1     Background of the study

1.2            Statement of the study

1.3            Purpose of the study

1.4            Significance of the study

1.5            Organisation of study

1.6            Research question

1.7            Definition of terms

1.8            Test of data



2.1            Literature review

2.2     Some definition of taxation

2.3     Importance of tax

2.4     Tax evasion and tax avoidance

2.5     Value added tax

2.5.1    Background of vat

2.5.2    Origin of vat in Nigeria

2.5.3    Sales tax

2.5.4    Rate as replacement of sales tax

2.5.5    Position of vat in sales tax

2.5.6    Value added vs Nigeria sales tax

2.5.7    Form of vat

2.5.8    Major features of vat

2.5.9    The nature of vat

2.6            Administration and policy

2.6.1    Registration

2.6.2    Supplies

2.6.3    Schedules of vat decree 102 of 1993

2.6.4    Determination of value

2.6.5    Liability of vat

2.6.6    Records and accounts

2.6.7    Vat inspection

2.7            Offences and penalties

2.8            Registration

2.8.1    Vatable imported services

2.8.2    Determination of value

2.8.3    The right or appeal

2.8.4    Assessment

2.8.5    Payment

2.8.6    Input tax

2.8.7    Evidence of input tax

2.9            Rendition of collection return by the Nigeria

2.9.1    Advantages of vat

2.9.2    Demerits Of Vat



3.1            Introduction

3.2            Sampling procedure

3.3            Method of data collection

3.4            Questionnaires design and administration

3.5            Personal interview

3.6            Survey of existing documents



4.1            Presentation and analysis of data and findings

4.2            Introduction

4.3            Presentation and analysis of data



Discussion, Conclusion and Recommendation

5.1            Discussion of findings

5.2            Conclusion

5.3            Recommendation

5.4            Suggestion for further research

5.5            Limitations of the study






1.0            INTRODUCTION


          Taxation has long been practice in Nigeria decree No 7 (1986) initially, only men were expected to pay taxes but now all person working and anybody found in the capacity of paying tax obtained to pay tax.

          Tax is a mandatory levy on income changed for the purpose incurred by the government in recent times through tax evasion are increasing rapidly despite the pathetic financial and economic state of the country.  There are daily reports on newspapers and magazines that the government loses billion of naira yearly due to evasion and the fraudulent practices of the tax officials.  This has been attributed to many factors.  Most people attribute this to the fact that the country’s tax system is highly income based and since income is taxed only at one point or stage a lot of evasion results.

In Nigeria, many different goods are consumed for this reason, tax experts see consumption as the actual liability and as the need to shift the tax based from income tax to consumption tax.

          Introduction of sales tax in Nigeria through decree no 7 of 1986.

However it was discovered that sales tax is narrow because it does not cover a lot of goods and services.  This prompted the introduction of Value Added Tax (VAT) in Nigeria.

          The idea of introducing vat in Nigeria came from the report of the study set up by the federal government in 1991 to review the entire tax system.  Vat was proposed and a committee was set up to carry out feasibility studies on its implementation.

          In January 1993 government agreed to introduce vat through the instrumentality of the vat decree no 102 of 1993.  This was meant to be effective from January 1, 1993 it came on stream as a replacement to its


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Tax Payers Perception On Value Added Tax System In Nigeria