The Federal Inland Revenue Service (FIRS) has initiated a stakeholders’ engagement with large taxpayer groups to prepare for the pilot phase of the Merchant Buyer Solution, an e-invoicing system set to launch in July 2024. The system aims to enhance tax compliance, reduce revenue leakages, and improve the ease of doing business in Nigeria by providing real-time visibility into business transactions.
In a bid to streamline tax compliance and improve financial transparency, the Federal Inland Revenue Service (FIRS) has engaged with large taxpayer groups ahead of the pilot phase of the Merchant Buyer Solution, an e-invoicing system. The stakeholders’ engagement, held in Lagos on Tuesday, marked a critical step in the implementation of the National E-Invoicing Solution, which FIRS announced earlier in 2024.
The e-invoicing system is designed to provide real-time visibility into business transactions and financial data, making compliance easier for taxpayers while reducing the need for audits. The pilot phase, scheduled to commence in July, will involve selected large taxpayers, with insights from this phase guiding the broader implementation across various sectors.
Tayo Koleosho, Chief of Staff to the Executive Chairman of FIRS, emphasised the transformative potential of the e-invoicing system during his presentation. “It makes compliance easy for all. It makes life easy for everybody. And that is what this point is about. It’s about making sure that as you’re doing your natural business, you are actually feeding the right data set that can then be automatically exchanged within the tax return side, and then your filing becomes much more seamless, and then reduces audits and improves compliance for everybody,” he explained.
Koleosho highlighted the importance of collaboration and feedback from stakeholders in refining the system. “We’re saying that the line is open. The team will listen to all ideas, and they’ve been doing that. A couple of the large tax providers will also talk about the experience so far. So again, this is to start with generation, collaboration pathfinding, and advice-seeking on this product, so when we finally launch our merchant buyer, e-invoicing, 3.0 product, you will be able to say, ‘Yes, I was part of that. I gave my contributions, my criticism, and my advice, and all these things were incorporated into this project so that it was built for us,’” he added.
Dr Olabode Olatunji, representing the Coordinating Director of the Large Taxpayer Group, underscored the strategic importance of the e-invoicing system. “Our engagement today serves as an important platform for dialogue, collaboration, and shared insights as we navigate the pilot rollout of this solution. The e-invoicing system is not just a technological innovation but a strategic enabler that aligns with international best practices, ensuring seamless tax compliance, reducing revenue leakages, and enhancing ease of doing business in Nigeria,” he stated.
Olatunji acknowledged the challenges associated with transitioning to a new system and assured stakeholders of FIRS’s commitment to addressing their concerns. “We understand that transitioning to a new system comes with challenges, and we are here to address any concerns you may have,” he said.
The e-invoicing system is expected to revolutionise Nigeria’s tax ecosystem by automating data exchange, improving accuracy, and fostering transparency. By integrating the system into business operations, FIRS aims to create a more efficient and taxpayer-friendly environment while boosting revenue generation.
The FIRS’s engagement with large taxpayers marks a significant milestone in the implementation of the e-invoicing system, set to pilot in July 2024. By fostering collaboration and addressing stakeholder concerns, FIRS aims to ensure a seamless transition to the new system, which promises to enhance tax compliance, reduce revenue leakages, and improve the ease of doing business in Nigeria. As the pilot phase unfolds, the insights gained will pave the way for a broader rollout, positioning Nigeria as a leader in adopting innovative tax solutions.
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