ISSN: 2225-8329
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This paper has the cardinal objective of carrying out a survey on the genesis and development of value added tax (VAT) administration. Specifically, the study intends to examine the origin and popularity of the VAT system globally, identify its emerging issues and the related consequences. Also, it is directed at ex-raying the development of VAT and its computational analysis, particularly as it relates to Nigeria. Empirical studies indicate that VAT has gained much popularity universally, inspite of its several emerging issues. That notwithstanding, it is speculated that, in the near future, VAT is likely to be replaced with retail sales taxes both in substance and in reality; it will be managed and administered almost entirely through the use of technology and be expanded in several ways. In Nigeria, the VAT law has gone through several amendments. The latest of the amendments which led to an increase in its rate by fifty per cent generated fierce debates among several interest groups. This study finds that the recent VAT increment may end up enhancing the total revenue of Nigeria but may have some negative effect on the per capita income of the polity. This likely consequence can be averted only if necessary palliative measures are taken concurrently. The study therefore advises the Nigerian government to have a second look at the necessity and timing of the current Value Added Tax increase and take the appropriate remedial actions.
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To cite this article: Agbo, E.I., Nwadialor, E.O. (2020). The Genesis and Development of Value Added Tax Administration: Case Study of Nigeria, International Journal of Academic Research in Accounting, Finance and Management Sciences 10 (2):15-30.
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Published by Human Resource Management Academic Research Society (www.hrmars.com)
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