THE IMPACT OF VAT IN NIGERIA ECONOMY (A STUDY OF FEDERAL INLAND REVENUES SERVICE)

ABSTRACT
This research work on the impact of value added tax in Nigeria economy is aimed at highlighting the important feature of value added tax its administration and collection in Nigeria. It also centers on the role which valued added tax collections have in government capital expenditure. Value added tax it is tax levied at each stage of production on firm. It is also a tax on the supply of goods and services which is eventually borne by the final consumer, but collected at each stage of production and distribution chain.The data used in this research work were obtained through primary and secondary sources. These source includes the use of questionnaire oral interview, personal observed useful information were equally collected from libraries, and internet. The sample question were analyzed using cables and charts. The Nigeria value added tax, which is a multi-staged tax is easily

administered since it is 5% rated. The value added tax revenue is equally  re-injected in the  economy through increased government final

consumption expenditure. Government may be happy about the high growing value added tax revenue but they have to address the increasing

complaint from organized private sectors about the effects of value added tax on their operating cost and the  prices of their products.

TABLE OF CONTENTS
Cover page                                i
Title page                                    ii
Approval page                                 iii
Dedication                                 iv
Acknowledgment                            v
Abstract                                    vi
Table of Contents                            vii
List of Tables                                viii
CHAPTER ONE
1.0 INTRODUCTION                         1
1.1 Background of the Study                      1
1.2   Statement of the Problem                 4
1.3 Objectives of the Study                      5
1.4 Research Question                        7
1.5 Hypotheses                             8
1.6 Significance of the Study                     9
1.7 Scope and Limitation of the study              9
1.8 Definition of Terms                          10
References                                12
CHAPTER TWO
2.0    REVIEW OF RELATED  LITERATURE         13
2.1 History of Taxation in Nigeria                 13
2.2 Importance of Taxation in Nigeria             18
2.3   What is VAT                            20
2.4 Types of VAT                            20
2.5 Consumption VAT                        21
2.6 Income VAT                            22
2.7 Gross Product VAT                        24
2.8 Method of Calculating VAT                 25
2.10   Subtraction Method                    25
2.11 Addition Method                        29
2.12 Advantages of VAT                        32
2.13 Disadvantages of VAT                    34
References                                35
CHAPTER THREE
3.0 RESEARCH  DESIGN AND METHODOLOGY     36
3.1 Research Design                         36
3.2 Area of the Study                         36
3.3 Population of the Study                     37
3.4 Sample and Sampling Procedures             37
3.5 Instrument for Data Collection                 38
3.5.1 Primary Sources                         38
3.5.2 Secondary Sources                     39
3.5.3    Method of Investigation                 40
3.5.4    Tools of Analysis                         41
3.5.5    Data Location                         41
3.5.6    Validation Of Instrument                 42
3.5.7 Reliability of Research Instrument             42
References                                43
CHAPTER FOUR
1.1    PRESENTATION ANALYSIS
AND INTERPRETATION OF DATA     44
4.2 Federal Inland Revenue Service Collection
On Value Added Tax                         58
4.3 Tax And Non-Tax Revenue Collection         60

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings                      61
5.2 Conclusion                                63
5.3 Recommendation                         64
Bibliography                            66
Appendix 1                            67
Appendix II                             68
Appendix II                                 74