FIRS To Introduce E-Invoicing Platform To Streamline Invoice Management
Dr Sacch Adedeji, Executive Chairman/CEO, FIRS
The Federal Inland Revenue Service (FIRS) has announced plans to introduce an e-invoicing platform to streamline invoice management and advance Nigeria’s tax administration system.
The Executive Chairman of FIRS, Dr. Zacch Adedeji, disclosed this in his Keynote Address delivered by his representative, the Acting Director, Medium Taxpayers Department, Mrs. Oti Olaniy, at the LCCI-FIRS Organised Private Sector Stakeholders’ Engagement themed “Emerging Tax Matters In Nigeria”, held in Lagos yesterday.
He said new digital platform, named FIRS e-Invoice, is set to streamline invoice management in alignment with the Tax Administration and Enforcement Act of 2007.
Adedeji emphasised the significance of e-invoicing for modernising and enhancing the efficiency of Nigeria’s tax system stating “Our collective efforts will pave the way for a more prosperous and resilient Nigeria. As we advance, we encourage support for these initiatives through constructive feedback and collaboration.”
He added that the introduction of e-invoicing is expected to foster a more robust and transparent tax environment, benefiting both businesses and the economy at large.
The FIRS boss also highlighted some of the transformations and reforms that have taken place in the nation’s taxation landscape since his assumption of office one year ago.
Some of the transformation, according to him, include organizational restructuring; tax reforms; streamlining operations and decentralizing key functions; crafting New Mission and Vision Statements to better align with it’s goals; creation of three operational groups from the previous – Small (Emerging Tax), Medium and Large Tax Groups to better cater for taxpayer needs according to their income threshold; creation of One-Stop-Shop: Both Tax Office and Tax Audit functions; introduction of several incentives to attract foreign investment and support local industries.
Other areas of reforms are leveraging technology to strengthen tax administration; development of a Taxpro Max platform which allows taxpayers to file returns and access various tax services online; establishment of a robust data management division to ensure accurate assessments and strategic planning; leveraging data analytics to enhance tax administration; introduction of tax education and public awareness to foster a culture of tax compliance; introduction of a simplified and business friendly tax regime on advanced payment of tax on specified transaction; Finance Acts and Deduction at Source (Withholding) regulations 2024.
Adedeji said on his assumptions of office on 18th of September 2023, he saw the need to unveil a new FIRS to drive the customer focus service delivery based on people, technology and process as well as harmonized tax services.
This reorganization, he said, represented a strategic shift towards attaining a customer-centric organizational structure aiming to systematically address challenges and ensure pragmatic reforms applicable to the Service’s complex realities.
He said the reason for streamlining operations and decentralizing key functions , was to enable the Tax Agency address long-standing challenges and improve its responsiveness to taxpayer needs, towards creating a more agile and accountable institution.
“By streamlining operations and decentralizing key functions, the FIRS aims to address long-standing challenges and improve its responsiveness to taxpayer needs.
“This restructuring is not just an administrative change; it’s a step towards creating a more agile and accountable institution that can better support Nigeria’s economic growth and development,” FIRS boss explained.
On Finance Acts and Deduction at Source (Withholding) regulations 2024, Adedeji said “The rise of the digital economy presents a significant challenge to traditional tax frameworks. To address this, Nigeria has implemented new tax policies targeting digital platforms, including the Finance Act’s provisions on VAT for digital services. This is a crucial step in ensuring that global tech companies and entities which provide services to remotely contribute fairly to our economy.
“The Withholding Tax (WHT) was designed to provide government with regular revenue flow and serve as a means of cutting tax evasion. However, over the years as the regime expanded with more transactions, various ambiguities and complications crept in.
Adedeji maintained that the FIRS is committed to a customer-centric approach aimed at enhancing voluntary compliance and boosting revenue generation, stating that ensuring tax compliance benefits both businesses and the government.
According to him, when businesses meet their tax obligations, it translates into increased revenue for the government, which is essential for funding public services and infrastructure development, ultimately driving economic growth and societal well-being.
“As we move forward, we must continue to innovate and enhance our tax system. Soon, we will introduce the FIRS e-Invoice, a digital solution for managing invoices in line with the Tax Administration and Enforcement Act 2007. This initiative, as part of our Digital Transformation Strategy, will facilitate real-time transaction validation and storage, benefiting Business-to-Business, Business-to-Consumer, and Business-to-Government transactions,” FIRS Chairman explained.
In conclusion, Adedeji said “the emerging tax matters in Nigeria present both challenges and opportunities. By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development. Our collective efforts will pave the way for a more prosperous and resilient Nigeria.”
While calling for continued collaboration in advancing Nigeria’s tax system for the benefit of all its citizens, he said “As we move forward, we encourage you to support these initiatives with constructive feedback and collaboration. By doing so, we can all build a stronger, more resilient economy that benefits everyone.”
