AN EVALUATION OF 'RETURNS RENDITION' IN VAT COLLECTION AND RECOVERY UNDER THE VALUE ADDED TAX ACT IN NIGERIA

Abstract This research is an evaluation of ‘returns rendition’ in Value Added Tax collection and recovery under the Value Added Tax Act in Nigeria. This study has become necessary considering the very important role played by Value Added Tax in Tax revenue generation in Nigeria and the need to sustain that role. The doctrinal method was adopted in the study and the information for the study were obtained from Tax Laws, case laws and the research effort of others. It was found from the study that Returns rendition is a very important aspect of Value Added Tax revenue collection process since it is the first step in Value Added Tax payment. It was also found that the preparation and submission of Value Added Tax returns is mandatory for all Value Added Tax registered businesses in Nigeria. It was further found that non-compliance with Value Added Tax returns renditions is sanctioned by the Tax Authorities. It was also further found that electronic filing of Value Added Tax returns has now been introduced in our Tax system and has been more efficient than the manual filing method. Based on this, it is recommended that due to the low level of computer Knowledge, and the fact that e-filing is more efficient, Tax Authorities should provide compulsory computer appreciation skills to businesses, especially the small businesses that may not have the financial means to engage the services of Accountants and Tax professionals. Tax Authorities should effectively use all available means of advertisement and promotions to bring to the notice of Taxpayers, especially those in the rural areas, the knowledge of Tax payment and the filing of returns. Finally, and most importantly, government should utilize Tax money to provide facilities needed by Taxpayers to encourage Tax compliance.