The Finance Act 2021, has clarified that the exemption from VAT compliance obligations granted by the Finance Act 2019, does not apply to companies engaged in Upstream Petroleum operations as described under both the Petroleum Industry Act and the Petroleum Profits Tax Act regimes.
This also implies that companies engaged in Upstream Petroleum operations will continue to have obligation to withhold VAT, even when they have not commenced commercial operations or have turnover less than N25 million.
For further enquiries, discussion, advisory or help around complying with these new laws, please send us an email via clients@vi-m.com. You will be able to access all our explanatory write-ups on each of the major changes to the laws, brought about by the Finance Act 2021 and the practical ways in which they will affect taxpayers going forward, under our website group link – https://www.vi-m/category/Finance-Act-2021.