Hello everyone, i own and run a bill payment platform (name withheld) and the business requires me to buy airtime (let us say for example mtn) and then use it to buy data and then resell to my customers . Giving that MTN is already paying the tax(VAT), do i really need to charge my customers the 7.5% tax or me paying it ?

i am just confused !

VAT is usually paid by the consumer and though they are some goods and services exempted from VAT, I doubt yours is exempted.

You should note that the Finance Act of 2019 gives a tax relief to SMEs by setting a threshold of 25m. The implication of this is that if your turnover is not up to 25m annually, you are not to collect VAT from your customers but if you collect, you must remit.

sirrotex:
VAT is usually paid by the consumer and though they are some goods and services exempted from VAT, I doubt yours is exempted.

You should note that the Finance Act of 2019 gives a tax relief to SMEs by setting a threshold of 25m. The implication of this is that if your turnover is not up to 25m annually, you are not to collect VAT from your customers but if you collect, you must remit.

My turnover is more than 25m and i have never collected VAT from my customers. Does this means i have to start collecting VATs giving that VAT is already paid by the network provider since i get my products by using airtime ?

There are some big big companies into this business too and they are not paying tax , at least not being showing when i try to buy anything from them

everythings:


My turnover is more than 25m and i have never collected VAT from my customers. Does this means i have to start collecting VATs giving that VAT is already paid by the network provider since i get my products by using airtime ?

There are some big big companies into this business too and they are not paying tax , at least not being showing when i try to buy anything from them

Whenever you u buy airtime you have already paid VAT charging your customers again is double taxation and will make your service costly

Solsix:

Whenever you u buy airtime you have already paid VAT charging your customers again is double taxation and will make your service costly

Yes , this is what i believed but the person handling this tax issue said i bought the airtime as an individual and not as a company that for this reason , i need to be charging my customer the VAT or pay it myself

everythings:
Hello everyone, i own and run a bill payment platform (name withheld) and the business requires me to buy airtime (let us say for example mtn) and then use it to buy data and then resell to my customers . Giving that MTN is already paying the tax(VAT), do i really need to charge my customers the 7.5% tax or me paying it ?

i am just confused !

You are expected to charge your customers and pay. In reality, what we pay is net vat I.e output vat less input vat.

There is what is called input vat and output vat. You may want to research on it. If you are doing business as an individual, you have no business with VAT. It is a federal tax administered by the FIRS.

everythings:


My turnover is more than 25m and i have never collected VAT from my customers. Does this means i have to start collecting VATs giving that VAT is already paid by the network provider since i get my products by using airtime ?

There are some big big companies into this business too and they are not paying tax , at least not being showing when i try to buy anything from them

everythings:


My turnover is more than 25m and i have never collected VAT from my customers. Does this means i have to start collecting VATs giving that VAT is already paid by the network provider since i get my products by using airtime ?

There are some big big companies into this business too and they are not paying tax , at least not being showing when i try to buy anything from them

You're doing yourself a disservice by not charging the vat. I guess you're not a corporate entity,

Femmyfamous4u:


You're doing yourself a disservice by not charging the vat. I guess you're not a corporate entity,

Charging VAT on a product created using airtime i bought from MTN will only make my service more expensive than the rest

everythings:


Yes , this is what i believed but the person handling this tax issue said i bought the airtime as an individual and not as a company that for this reason , i need to be charging my customer the VAT or pay it myself

It's not true. VAT is charged once at the source this is to avoid double or multiple taxation.