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HIGHLIGHTS OF SALES TAX LAW

This guide is based on the provision of Sales Tax Law Cap. 175 Law of Lagos State of Nigeria 1994 as amended by Sales Tax (Schedule Amendment) Order 2000.

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    • Sales Tax is borne by the final consumer or purchaser of chargeable commodities listed in the schedule below
    • The tax is at a flat rate of 5%
    • The seller or supplier of any chargeable commodity under this Law shall, as the agent of the State, collect, account for and remit the sales tax to the IRS.
    • Seller or Supplier includes manufacturer, importer, wholesaler or distributor, but does not include a retailer.
    • A seller or Supplier shall complete Sales Tax Form 001 and return it to the nearest tax office. A permanent Sales Tax Registration Number is to be given to each registered payer.
    • The registered person has to file monthly Sales Tax Returns Form 002 to the local tax office on or before 30th day of the month following that which sales was made. (see the example below).
Period of Transaction i.e. Tax Period Due Date of Filling Sales Tax Return
(including remittance)
01/04/2003-30/04/2003 01/05/2003 - 30/05/2003
  1. Sales Tax to be paid to any Lagos State Government Approved Bank for Revenue Collection after collecting Bank Payment Advice from the Tax office
  2. Every seller or supplier of chargeable commodities, shall keep, maintain and preserve such records. Books and accounts in respect of all transactions by him on any chargeable commodities as the IRS may prescribe and shall enter therein regular accounts of the sales tax collected day by day.

TAX (SCHEDULE AMENDMENT) ORDER 2000

PART 1 >>> (TAXABLE GOODS AND RATE OF TAX THEREON)
S/N TAXABLE GOODS RATE%
1 Beer 5
2 Wine, Liquor and Spirits 5
3 Cigarettes and Tobacco 5
4 Jewels and Jewelleries 5
5 Perfumes and Cosmetics 5
6 Electrical and Electronic Equipment 5
7 Carpets and Rugs (excluding linoleum) 5
8 Soft drinks (including mineral water) 5
9 Building materials ( General) 5
10 Interior decoration items, including wall papers 5
PART 2 >>> (TAXABLE SERVICES AND RATE OF TAX THEREON)
11 Sales and Services in registered Hotels, Motels, Catering establishments, Restaurants and other Personal Services establishments (excluding drinks) 5

For Further inquiries please contact:

The Chairman, Lagos State Internal Revenue Service, Block 19, The Seceretariat Alausa, Ikeja.


Form Title No Yes
Sales Tax Registration Form Yes Yes
Sales Tax Return Yes Yes