VATrac Help Manual

About the Guide

The summary guide provides a brief description of the VAT project, some pre-implementation requirements and basic information that merchants should be aware of prior to integration to the VAT platform. The guide provides a concise picture of the new VAT platform and enables merchants prepare their business and IT environments in readiness for the automation process.

About the Project

Overview

The Automated VAT Platform (VATrac™) is an initiative of the Federal InlandRevenue Service (FIRS) designed to handle and manage entire life-cycle of VATcollection and remittance in the Wholesale/Retail sector, specifically covering:Branded Shops, Super Stores, General Supermarkets, Standard Restaurantsand Eateries nationwide. It is provided to streamline and facilitate your “ease ofdoing business” with the FIRS.

VAT Returns Filing & Payment Processing

To further simplify tax administration and lessen VAT compliance burdens formerchants, the Form 002 has been embedded in the solution, making VAT returnsfiling seamless, efficient and automatic. In addition, as part of the efforts to easeremittance of VAT payable, the platform has been integrated with a Direct DebitPayment System.

Pre-Implementation Requirements

Registration on the FIRS VATrac Platform

As part of the automation process, merchants are required to pre-register on the VATrac platform for identification and verification purposes. This also includes registration of all branches where applicable. Please follow the simple steps below to complete your registration:

STEP 1: Visit the FIRS VATrac Portal on: https://vatrac.firs.gov.ng to access the merchant page using the merchant link, as depicted in the diagram below:

STEP 2: On the merchant page, click on the link “Register Now” below the Login button

STEP 3: Enter Your Tax Identification Number in the input field provided and complete the Captcha challenge. Then, click on Register. An OTP will be sent to the Merchant’s Email. NOTE that the OTP will be sent to your registered email with the FIRS. Fill in the OTP in the next page and Setup Your Password. You will be redirected to the login page once registration is complete.

Things Merchants Must Know/Be Aware Of

Mandatory Tokens

In strict compliance with the requirements of the new VAT Platform, merchants should note that the following tokens must be henceforth displayed on their transactions/sales receipts:

1. FIRS Tax Identification Number (TIN) or Joint Tax Board TIN;

2. Print Date;

3. Goods/Product Description;

4. Receipt Number;

5. Grand Total billed to customer;

6. Standard 7.5% VAT amount applicable on the total (as a distinct line item).

Direct Debit Mandate

In line with requirements of the VAT platform, merchants should kindly note that they will be required to complete and sign a direct debit mandate form which is to be returned to the FIRS to authorise and facilitate remittance of their monthly VAT payable.

Provision of a VAT Account for the Direct Debit Mandate

To execute the seamless implementation of the direct debit mandate and to ensure prompt remittance, merchants will be required to nominate or provide an account that will be automatically debited to offset the VAT payable on a monthly basis.

Connection to the FIRS VATrac Platform

Merchants should kindly note that in compliance with the directive of the FIRS as contained in the Public Notice published on Wednesday, March 31, 2021, it is mandatory to ensure timely connectivity with the VAT platform. It is therefore important that all Point of Sale (POS) or Fiscal machines in use at merchants’ sites be integrated with the platform.

In view of this, FIRS officials and the Technical Team will be visiting your establishments/organisations to complete the integration process, which will be carried out without any disruption to your daily business operations and routines. The process which is usually conducted with little or no input from your staff (to ensure they are not taken off their daily tasks unnecessarily) entails: Setup/installation, enrolment, configuration, training a model, receipt print test, activation, etc.

Some Frequently Asked Questions

Provided below are answers to some frequently asked questions. The list is not exhaustive and you may direct further questions or clarifications to the nearest FIRS Tax Office.

What is the new VAT automation about?

As already explained, it is to make tax administration simpler and smarter for you and make our services more effective, efficient and responsive.

Will I be required to buy new equipment/hardware?

No. The FIRS VATrac platform is designed to work seamlessly with any existing standard Point of Sale (POS), Cash Register or Fiscal machines already available at your organisation on Windows OS.

Will I pay for this service?

No. As with other FIRS services, connection to the FIRS VAT platform is free.

Is there any legal framework supporting the automation project?

Yes. In line with the provisions of Section 25(4) of the Federal Inland Revenue Service Establishment Act 2007 as amended by section 51 of Finance Act 2020. (See Attached Public Notice for more.) https://www.firs.gov.ng/wp-content/uploads/2021/04/2021-Automated-Tax-Admin-System.pdf

Should I be concerned about the confidentiality of my information?

Issues of confidentiality of taxpayer information/data are adequately addressed by the provisions of Section 39 (1) & (2) of the FIRS Establishment Act, which state that:

Without prejudice to the provisions of any other Act concerning secrets, all information and documents supplied or produced in pursuance of any requirement of this Act or the laws listed in the First Schedule to this Act shall be confidential.

In addition, the VAT platform is built with the highest level of security to ensure no breach of data trust, as well as guarantee data privacy and confidentiality in line with global best practices, and in strict conformance to the provisions of relevant tax laws.

What are the requirements for automation/integration?

Some key requirements have already been listed under the section “Things Merchants Must Know/Be Aware Of”. You may contact the nearest Tax Office for any further information or clarification with regard to requirements.

How does the new system benefit my organisation?

Please see the section “Benefits to Merchants”. In addition, it is important to say that integration with the platform ensures your automatic compliance with relevant tax laws of the land and keeps you in the good books of the FIRS.

How is the new VAT platform different from the manual process?

As previously explained, the new platform has been designed to ease administrative and operational burdens for both the FIRS and merchants. It is to make tax administration simpler and enable FIRS deliver services to you more effectively and efficiently.

Will the new VAT platform change the existing VAT processes?

No. All existing VAT processes as currently being carried out have not changed. The new system is built primarily to make the processes more effective and smarter, as the Form 002 has been embedded into the VAT platform. So, you will still be working with what you are already familiar with, however, with far greater efficiency.

How does the Direct Debit Payment work?

The Direct Debit Payment is a core feature of the new FIRS VAT platform, and it is designed to ensure that monthly VAT payable is deducted from a merchant pre-nominated VAT account and remitted automatically to FIRS. Every merchant will be required to complete and sign a Direct Debit Mandate form and return same to the FIRS. Please note that the Account Number to be provided for this purpose will not necessarily be your regular operational account, but a designated account that shall be sufficiently funded to offset the accumulated VAT payable on a monthly basis.

How does the new VAT Platform work?

The new VAT platform is designed to connect to and interface seamlessly with your existing fiscal systems without any disruption, interference or breach. We have designed different implementation models to suit your operating environments.

Benefits to Merchants

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Compliance Made Easy - Connection to the platform guarantees automatic compliance with relevant tax laws, as all fiscalisation rules and parameters have been pre-built into the system;

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Universal Compatibility on Windows OS - the solution connects seamlessly with any existing POS, ERP system, Billing system, solutions, etc., at the merchants’ sites on Windows OS, without requiring any major changes;

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Zero Cost - the system will be implemented at no cost to the merchants and does not require any new infrastructure - hardware or equipment to be acquired. The solution will leverage and ride on the existing standard infrastructure and technology platforms at your organisations;

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Zero Impact on Daily Operations - the solution will have no impact on the operations of the merchants, as it will work seamlessly without disrupting your internal business processes;

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Administrative Support - the solution will provide support to merchants in terms of filing tax returns, checking status with FIRS, and making remittances accurately, correctly and timely;

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Intrusion Free - 100% intrusion-proof solution, giving merchants peace of mind with regards to data protection and privacy, etc. The system only tracks fiscal related transactions and does not capture or track data outside those defined by the FIRS, in fulfillment of the requirements of its relevant tax laws.

For Further Enquiry

For more information or clarification with regard to the VAT automation process, please contact the nearest FIRS Tax Office.

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