It is now one month to the expiration of the Value Added Tax (Exemption of Commissions on Stock Exchange Transactions) Order, 2014 (“the Order”). The Order was made in 2014 by the then.
Co-ordinating Minister for the Economy and Minister of Finance in exercise of her powers under section 38 of the Value Added Tax (VAT) Act, Cap. V1, Laws of the Federation of Nigeria, 2004 and confers exemption from VAT on commissions:
Earned on traded value of shares;
Payable to Securities and Exchange Commission;
Payable to the Nigerian Stock Exchange; and
Payable to the Central Securities Clearing System.
The Order, which became effective on 25 July 2014, was to operate for 5 years as part of the Federal Government’s policy measures to encourage investments in the Nigerian capital market. Subject to any extension of the Order by the Minister of Finance, VAT would become applicable to commissions earned or payable on transactions conducted on stock exchanges in Nigeria effective 25 July 2019. Affected taxpayers should therefore take note and be guided accordingly.
Source: Proshare
