FIRS introduces e-invoice, to facilitate real-time transaction validation, storage, others.

By Sherifat Oyediran, Lagos.

In its bid to improve the Ease of Doing Business in the country, Federal Inland Revenue Service (FIRS), has announced plans to introduce e-invoice, a digital solution for managing invoices to facilitate real-time transaction validation and storage, benefiting Business-to-Business, Business-to-Consumer, and Business-to-Government transactions.

This was started at the LCCI -FIRS Private Sector Stakeholders ‘ engagement with the theme, ‘Emerging tax matters’, by Executive Chairman, FIRS, Dr. Zacch Adedeji.

Adedeji discussed that the digital solution will be in line with the Tax Administration and Enforcement Act 2007.

Represented by the Acting Director, Medium Taxpayers Department, Mrs. Oti Olaniyi, said that the emerging tax matters in Nigeria present both challenges and opportunities.

According to him, By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development. Our collective efforts will pave the way for a more prosperous and resilient Nigeria. As we move forward, we must continue to innovate and enhance our tax system.

He emphasized the need to recognize the vital role that taxpayers play in a country’s economic development as they are instrumental in financing the infrastructure projects that are critical to the progress at all levels of government. FIRS is tasked with the collection, assessment, accounting and enforcement of various taxes, which includes, Corporate Income Tax (CIT), Value Added Tax (VAT), Petroleum Profit Tax (PPT), Capital Gains Tax (CGT), and Education Tax (EDT), among others. These revenues are deposited into the Federation Account and are distributed monthly to the three tiers of government according to a set formula. Additionally, Value Added Tax (VAT) follows a distinct sharing ratio: 15% to the Federal Government, 50% to the States, and 35% to the Local Governments.

The FIRS Boss noted that on assumptions of office, he recognized the need to unveil a new FIRS which intends to drive the customer focus service delivery based on people, technology and process as well as harmonized tax services.

“This reorganization represents a strategic shift towards attaining a customer-centric organizational structure aiming to systematically address challenges and ensure pragmatic reforms applicable to the Service’s complex realities.

“By streamlining operations and decentralizing key functions, the FIRS aims to address long-standing challenges and improve its responsiveness to taxpayer needs. This restructuring is not just an administrative change; it’s a step towards creating a more agile and accountable institution that can better support Nigeria’s economic growth and development.

“Some of our achievements are creation of three operational groups from the previous General Tax Operation Group (GTOG) – Small (Emerging Tax), Medium and Large Tax Groups to better cater for taxpayer needs according to their income threshold. Creation of One-Stop-Shop: Both Tax Office and Tax Audit functions within an Integrated Department, as well ensuring that matters relating to all taxes are handled in the tax office (no more VAT Coordination, Stamp Duty Office etc) to forestall harassment of taxpayers by multiple function.

FIRS boss stated that the agency is committed to a customer-centric approach aimed at enhancing voluntary compliance and boosting revenue generation. Ensuring tax compliance benefits both businesses and the government. When businesses meet their tax obligations, it translates into increased revenue for the government, which is essential for funding public services and infrastructure development, ultimately driving economic growth and societal well-being.

While explaining that another key area of reform involves leveraging technology to strengthen tax administration, he said FIRS has developed a platform called Taxpro Max, which allows taxpayers to file returns and access various tax services online. Our suite of e-services—including e-filing, e-reporting, e-registration, and e-TCC—demonstrates their commitment to facilitating easy and efficient tax management.

“Tax education and public awareness are vital for fostering a culture of tax compliance. Taxpayer education campaigns help citizens understand their tax obligations and the benefits of tax revenue. Initiatives like our monthly Tax Thursdays and sensitization exercises in schools aim to enhance public understanding of tax. Furthermore, our newly established contact centre ensures that taxpayer inquiries and complaints are addressed promptly, within 48 hours,” he further explained.

Adedeji pointed out that Nigeria is at a crucial juncture in its economic evolution.

He said ; “Our tax system, a foundational element of economic policy, is undergoing significant reforms. These changes are driven by the need for increased revenue, better compliance, and more equitable economic practices. These reforms are essential to meet with emerging tax issues and also commensurate with the fiscal tax reforms being handled by the Presidential Fiscal Policy and Tax Reforms Committee. Historically, our tax revenue has not kept pace with the needs of our expanding population and infrastructure demands. Our heavy reliance on oil revenues has highlighted the need for diversification. Thus, modernizing our tax system to address current economic challenges is crucial.