Nigeria Removes VAT on Gaming Stakes, Tightens Revenue Rules

Nigeria has announced the removal of Value Added Tax (VAT) on gaming stakes, a significant change aimed at clarifying tax obligations within the gaming industry. This decision was presented by Wyze Adedoyin and Oriadetu, highlighting the government's focus on compliance and revenue generation.

While VAT on stakes is abolished, a withholding tax of 5% for resident players and 15% for non-residents will apply to prize disbursements. Additionally, the corporate tax structure will undergo revisions, affecting smaller legacy taxes and introducing a minimum effective tax rate of 15% for companies with an annual turnover above 50 billion Naira.

Compliance requirements will be tightened, including mandatory VAT registration and the use of an electronic invoicing system linked directly to the Federal Inland Revenue Service. Companies failing to comply may face significant penalties, including a 5 million Naira fine for engaging vendors without valid tax identification numbers.

The changes aim to enhance oversight and ensure fair taxation across the gaming industry.