THE EFFECT OF VALUE ADDED TAX (VAT) AS A SOURCE OF REVENUE TO THE FEDERAL GOVERNMENT OF NIGERIA (2005-2009)

ABSTRACT

The value added tax(VAT) came into force decree of 1993,which did not only introduce VAT also the sales tax decree of 1986.

This project is to highlight more on effect of value added tax (VAT) As a source of revenue for the federal government of Nigerian. In the course of achieving this purpose, initial problems encountered in the introduction of vat and the mode of collection and administration on the federal government.

  Chapter one started with the general introduction and overview of the topic. It also highlighted the problems which the government sensed that VAT might not be accepted adequately, and of what impact or effect VAT  return to the federal government of Nigeria.

Chapter two reviews related literature covering VAT administration, registration, office, theories and models, current literature based on each of the relevant variable of the model and summary of the chapter.

Chapter three covered the finding, discussion of the theoretical frame work and methodology introduction, ration ate, for choice of variable, ditch selection and analysis etc.

Chapter four covers the s presentation and analysis of data, classification and calculation and the interpretation of the results.

Finally, a further research suggestion that needs to be conducted which are the impact of anti-corruption act on the effective implementation of VAT decree and the co-operative analysis of VAT and other forms of tax were also stated. Then the summary of every thing that has to do with effect of the value added tax as a source of revenue to the federal government.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

1. Introduction
   1. Background of the study
   1. Statement of the problem
   1. Objective of the study
   1. Research questions
   1. Significance of the study
   1. Scope of the study
   1. Limitation of the study
   1. Definition of terms

CHAPTER TWO

• Literature Review
  • Value added tax in Nigeria
  • Theories and models relevant to the research hypothesis
  • Current literature based on each of the variable of the model theory
  • Summary of the chapter

CHAPTER THREE

• Research methodology
  • Population and sample size
  • Nature and sources of data
  • Data collection method
  • Data  analysis techniques

CHAPTER FOUR

• Data  Presentation and analysis
  • Presentation of data

CHAPTER FIVE

• Summary, Conclusion and Recommendations
  • Summary
  • Conclusion
  • Recommendations

Reference

Appendix

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Taxation is compulsory payment made by adult within a limited age to provide avenue of income for the government of a country.

As it implies, it can also be define as instrument for tools of any country to influence the level of economic activity of any country.further, taxation in other words is a liability imposed upon the tax payers who may be individuals, group or other legal entities. It is an amount paid on account of fact that the tax payers has as income of minimum amount from certain tangible property, so that he makes profit on economic activities which have been chosen for taxation.

A tax is an imposition that is generally created and regulated by law. In Nigeria such law includes the income tax management act of 1961, the capital gain tax  act of 1976, the abrogated and the newly introduced VAT (value added tax) decree No 102 of ).

 INTRODUCTION OF VAT   

VAT (Value added tax) is a general consumption tax assessed on the value added to goods and services as they pass through the supply chain.

Today, about 135 countries utilize and implement VAT and it is either the largest or second of the largest source of tax revenue.

VAT has purpose, a committee that was set up to carryout resistibility study on its implementation in januray,1993 the federal government agreed to introduced VAT. It was intensified to fist September 1993.

Apart from the general need for money to finance the administration of tax, security and social service for the citizens, taxes are impose for restraining or certainly consumption n and the transferring rescues from consumption to invest.

The revenue generated from VAT is shared among the three tiers of government, during the implementation of this 1994, the state government received 80% of the proceeds while 20% went to the federal government for covering its administration cost. In the subsequent years the distribution formula continues to change until now.