Setting up a Withholding VAT (WHT VAT) mechanism in Nigeria, alongside standard Withholding Tax
Summary:
Scenario:
- Withholding VAT: The customer (payer) deducts 100% of the VAT due (7.5% of invoice value) at source and remits it directly to the Federal Inland Revenue Service (FIRS).
- Withholding Tax (WHT): The customer also deducts the standard WHT (commonly 5% for most services) and remits to the relevant tax authority.
- Supplier Payment: The supplier receives the invoice amount less both the VAT and WHT.
Gross Invoice | 1,075,000 |
|---|---|
Less: VAT withheld | (75,000) |
Less: WHT withheld | (50,000) |
Net Payment | 950,000 |
How could we address it in Oracle Fusion?
Content (please ensure you mask any confidential information):
Version (include the version you are using, if applicable):
Code Snippet (add any code snippets that support your topic, if applicable):
0