FIRS To Introduce e-Invoice To Facilitate Real-Time Transaction Validation, Storage, Others

Federal Inland Revenue Service (FIRS), has per­fected plans to introduced 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.

Dr. Zacch Adedeji, Executive Chairman, FIRS, while speaking at the LCCI -FIRS Private Sector Stakeholders ‘ engagement with theme, ‘Emerging tax matters’, organised by Lagos Chambers of Commerce and Industry, said that the digital solution will be in line with the Tax Administration and Enforcement Act 2007.

The FIRS boss, was represent­ed by Acting Director, Medium Taxpayers Department, Medium Taxpayers Department, Mrs. Oti Olaniyi, further said that the emerging tax matters in Nigeria present both challenges and op­portunities.

“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.

“As we navigate the complexi­ties of our globalised economy, it is crucial to understand the evolv­ing landscape of taxation and its implications for our country’s growth and development.

“It’s essential to recognise the vital role that taxpayers play in a country’s economic development. They are instrumental in financ­ing the infrastructure projects that are critical to our progress at all levels of government.

“Our agency is tasked with the collection, assessment, account­ing and enforcement of various taxes, including 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,” he explained.

The agency boss, noted that on assumptions of office, he saw 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 harmonised tax services.

“This reorganisation 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 decentralising 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.

“The FIRS 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.

“Another key area of reform involves leveraging technology to strengthen tax administration. The 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 our commitment to facilitating easy and efficient tax management. Additionally, we have established a robust data management division to ensure accurate assessments and stra­tegic planning, leveraging data analytics to enhance our tax ad­ministration.