E-invoicing will reduce audit by taxpayers – FIRS

The Chief Staff Executive Chairman of the FIRS, Tayo Koleosho, has emphasized that the implementation of e-invoicing will significantly reduce the need for audits by taxpayers. Following a workshop that highlighted the limitations of audit-driven tax compliance, Koleosho described e-invoicing as an innovative method to decrease the number of audits carried out on taxpayers, promoting voluntary compliance.

The FIRS is determined to increase the use of data to drive voluntary compliance, shifting focus away from audits, which can be destructive to businesses. Koleosho stressed the importance of digitization in driving tax compliance, aligning the country with global tax practices.

The agency has tightened transaction processes and platforms to prevent cybercrime, with support from NITDA. Koleosho also highlighted the role of access point providers in transmitting taxpayer data securely.