AN APPRAISAL OF VALUE ADDED TAX FISCALIZATION IN NIGERIA TAX ACT 2025: A COMPARATIVE VIEW

Abstract

Fiscal policy stands as a crucial pillar of economic development through its economic financing function. Since the inception of advancement in technology, internet has expanded in size, use and impact. The deficiency in Nigerian VAT system led to inability to levy VAT on E- transaction or commerce. Recently, attempt has been made to fill the lacuna on collection mechanism and in so doing incorporated VAT Fiscalization into the Nigerian Tax Act 2025 and Tax Administrative Act 2025. Digital fiscal system is introduced to automatically send every transaction to the central servers of the fiscal authority. It is open for the fiscal authority to use automated VAT collection procedures to automatically collect taxes from cash –only business, bank transactions or even both. This paper is aimed at examining the impact and or effect of VAT fiscalisation in Nigeria. This paper queried if there has been a measure put in place by government to eliminate technology assisted devices that would hinder VAT collection. The methodology adopted in this work is doctrinal wherein primary and secondary sources of materials were utilized. Upon findings, this paper revealed that challenges of VAT administration on digital services are not peculiar to Nigeria alone. The work recommended that a law should be made to criminalize or make it unlawful for one to create, repair or install automated suppressing device that hinders smooth tax administration or collection of VAT.