ABSTRACT
This work was aimed at evaluating tax payers 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
goods and services. This was in view of the numerous benefits, which
could be derived from the exercise.
Prior to the introduction of VAT sales, tax system was in
operation but tax experts see it as being too narrow and also unable to
generate the expected revenue for the government. This also led to the
need for an alternative tax system VAT.
However all the above are the views of all government the
research finds it necessary to evaluate the opinions of tax payers who
are the incidence bearers of VAT in order to make a comparative analysis
with the opinions of the government. Three samples were used in this
study namely; consumers, producers and tax official. The two
hypothesis test where all in favour of VAT proving that VAT is a fair
and equitable system and it is perceived to favour tax payers.
In order to enhance the performance of the VAT system, the
researcher made some recommendations to the Federal Government.
TABLE OF CONTENTS
Certification
Declaration
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Statement of the problem
1.2 Purpose of the study
1.3 Significance of the study
1.4 Organisation of the study
1.5 Research questions
1.6 Hypothesis
1.7 Definition of terms
1.8 Test of data
1.9 Limitation of the study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Some definitions of Taxation
2.3 Importance of Taxes
2.4 Taxes evasion and avoidance
2.5 Value added tax
2.5.1 Background of VAT
2.5.2 Origin of VAT
2.5.3 Sales Tax
2.5.4 VAT as replacement of sales Tax
2.5.5 Position of VAT in sales taxes
2.5.6 Value added tax Nigeria sales tax
2.5.7 Forms of VAT
2.5.8 Major features of VAT
2.5.9 The Nature of VAT
2.6.0 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 Returns
2.6.6 Remittance of VAT
2.6.7 Liability to VAT
2.6.8 Records and Account
2.6.9 VAT Inspection
2.7.0 Offences and penalties
2.8.0 Administration of VAT on imports
2.8.1 Registration
2.8.2 Vatable imported services
2.8.3 Determination of values
2.8.4 The right of Appeal
2.8.5 Assessment
2.8.6 Payment
2.8.7 Input tax
2.8.8 Evidence of input tax
2.8.9 Rendition of collection: Return by Nigeria Custom
2.9.0 Advantages of VAT
2.9.1 Demerits of VAT
2.9.2 Merits of VAT in Nigeria Economy
CHAPTER THREE: METHODOLOGY
3.1 Introduction
3.2 Sampling procedure
3.3 Method of data collection
3.3.1 Questionnaire design and administration
3.3.2 Personal interview
3.3.3 Survey of the existing documents
3.3.4 Statistical technique
CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA AND FINDINGS
4.1 Introduction
4.2 Presentation and analysis of data
4.3 hypothesis testing
CHAPTER FIVE: FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Findings
5.2 Recommendation
5.3 Conclusion
5.4 Recommendation for further research
REFERENCE
BIBLIOGRAPHY
CHAPTER ONE
1. INTRODUCTION
Taxation has long been practice in Nigeria. Initially, only
men were expected to pay taxes but now all people working and anybody
found in the capacity of paying tax are obligated to pay tax.
Tax in a mandatory levy on income charged for the purpose
of carrying out government activities losses incurred by government in
recent times through tax evasion are increasing rapidly despite the
pathetic financial and economic state of the country. There are daily
report on newspaper and magazines that government losses billions of
naira yearly due to tax evasion and the fraudulent practices of the tax
officials. This has attributed to many factors. Most people attribute
this to the fact that the country’s tax system in highly income base
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 habit and as such, the
need to shift tax base from income tax to consumption tax. This
necessitated the introduction of sales tax in Nigeria through degree N0.
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 group set up by the Federal Government in 1991 to review
the entire tax system, VAT was proposed and a committee was set up to
carryout feasibility studies on its implementation. In January 1993,
government agreed to introduce VAT through instrumentality of the VAT
Degree 102 of 1993. This was meant to be effective from January 1 1994.
It came on stream as a replacement to its antecedent, the sales tax,
which was characterized by a lot of lapses inadequacies and restrictive
coverage. VAT is a consumption tax imported on all manufactured goods,
industrial raw material and other imported into or product in Nigeria a
single rate of five percent. Potentially, its draguel cover virtually
everybody, since one thing or the other except in the cases of specific
items that are exempted.
Several benefits which the government expected to derive from value
added tax (VAT) were enumerated. During several others they are
i. Increase in revenue generation
ii. Facilitation of administrative enforcement