Tipping In Nigeria
In most bars and restaurants tips are not expected, but 5-10% is optional. Apparently, if tips are given, the recipient will show extreme, and sometimes colourful, gratitude!
Again, in hotels a 5% tip is optional but only for great service. Remember that taxi fares are usually increased for tourists so tipping isn’t as necessary unless you wish to reward exceptional service, when you could round up. It’s a good idea to negotiate a fare before embarking, to include the tip.
Value Added Tax (VAT) – Frequently Asked Questions
Question 1: What is Value Added Tax?
Answer: Value Added Tax (VAT) is a tax levied on consumption of goods and services.
Question 2: On what types of goods and services do you pay VAT?
Answer: The VAT Act CAP.VI LFN 2014 requires that you pay VAT on all goods manufactured/assembled in or imported into Nigeria, and all services rendered by any person in Nigeria except those specifically exempted under the law as follows: basic (raw) food items, baby products, medical services and services rendered by Community Banks etc.
Question 3: What is the VAT rate?
Answer: 5 per cent
Question 4: What is the due date of filing VAT returns?
Answer: On or before the 21st day of the month following the month of transaction.
Question 5: What are the relevant documents required for filing VAT returns?
- Evidence of payment such as bank teller, e-ticket, e-acknowledgement etc. from an FIRS designated revenue collecting bank.
- Completed VAT Returns Form 002 (for individuals, enterprises and companies).
- Schedule of VAT collected indicating the: Name, Taxpayer Identification Number (TIN) of company or individual on whose transaction the VAT was charged and the related amount.
Question 6: Who should register for VAT?
Answer: Both individual and corporate bodies so long as they are trading in goods and services.
Question 7: How do you register for VAT collection?
Answer: Once you register with the FIRS by completing Taxpayer Registration Input Form, submit copies of prescribed documents and obtain Taxpayer Identification Number (TIN), you are automatically registered and authorised to collect VAT.
Question 8: When should a taxable person register for VAT?
Answer: All taxable persons are expected to register for VAT immediately they are registered with Corporate Affairs Commission (CAC) or commencement of business.
Question 9: What are the penalties for:
i. Non – registration for VAT?
Answer: A penalty of N10,000 for the first month in which the failure occurs and N5,000 for each subsequent month. If this persists, the business premises will be sealed up after a considered reasonable period
ii. Non – remittance of VAT?
Answer: A penalty of a sum equal to 5% per annum plus interest at a commercial rate payable within 30 days of notification by the Tax Authority.
Question 10: How do you pay VAT?
Answer: VAT is paid through all FIRS designated revenue collecting banks into the VAT Pool Account.
Banks In Nigeria
Central Bank of Nigeria
Naira notes and coins are printed/minted by the Nigerian Security Printing and Minting Plc (NSPM) Plc and other overseas printing/minting companies and issued by the Central Bank of Nigeria (CBN). At the currency printing works of the NSPM Plc, quality is meticulously controlled throughout every process of currency production. This guarantees that every note issued meets the required standard. The CBN maintains an office called Mint Inspectorate in the premises of the NSPM Plc to maintain security and quality of Naira notes and coins.
Currency is issued to deposit money banks through the branches of the CBN, and old notes retrieved through the same channel. Currency deposited in the CBN by the banks are processed and sorted to fit and unfit notes in line with the clean note policy. The clean notes are re-issued while the dirty notes are destroyed.
Central Bank of Nigeria: Plot 33, Abubakar Tafawa Balewa Way – Central Business District, Cadastral Zone,Abuja, Federal Capital Territory, Nigeria P.M.B. 0187, Garki Abuja. Nigeria
Commercial Banks in Nigeria
1. Access Bank Plc
3. Diamond Bank Plc
5. Enterprise Bank
6. Fidelity Bank Plc
7. FIRST BANK NIGERIA LIMITED
8. First City Monument Bank Plc
9. Guaranty Trust Bank Plc
10. Heritage Banking Company Ltd.
11. Key Stone Bank
12. MainStreet Bank
13. Skye Bank Plc
14. Stanbic IBTC Bank Ltd.
15. Standard Chartered Bank Nigeria Ltd.
16. Sterling Bank Plc
17. SunTrust Bank Nigeria Limited
18. Union Bank of Nigeria Plc
19. United Bank For Africa Plc
20. Unity Bank Plc
21. Wema Bank Plc
22. Zenith Bank Plc