The VAT row between the Federal Government and some States of the federation has left companies confused over where to remit their August VATs.
Recall that Checkout Magazine reported that the Attorney-General of the Federal, Justice Abubakar Malami had directed that companies remitted their August VATs to the Federal Inland Revenue Service (FIRS) in line with the Court of Appeal order that status quo antebellum be maintained.
Rivers State has urged the Court of Appeal to order the appointment of a receiver/manager over VAT pending the determination of an appeal by the Federal Inland Revenue Service (FIRS) against the Federal High Court judgment empowering states to collect VAT.
Lagos has also prayed the appellate court to stop the FIRS from further sharing the revenue to states until the case is determined in order to preserve the res (subject-matter).
The Court of Appeal directed the parties to file formal applications on their requests.
Ahead of yesterday’s deadline for August VAT remittance, the Organised Private Sector of Nigeria (OPS) urged the Federal Government to clarify the confusion on who businesses should pay to.
The Manufacturers Association of Nigeria (MAN) Director-General, Mr Segun Ajaiyi-Kadir, said members would continue to abide by the status quo by remitting to the FIRS as ordered.
“Based on feedback from our executive secretaries, status quo is still the case.
“Lagos State Government has not started demanding that our members remit VAT to it based on the judgment by a Federal High Court in Port Harcourt, Rivers State, which held that the Federal Government lacked constitutional power to collect VAT.”
