A model for VAT standardization in Nigeria: Enhancing collection and compliance

This paper explores a proposed model for the standardization of Value-Added Tax (VAT) in Nigeria, aiming to enhance both collection efficiency and compliance. VAT is a significant revenue source for Nigeria; however, inefficiencies in its collection and compliance present challenges to economic development. The study addresses these issues by proposing a comprehensive model that integrates global best practices with local context. The proposed model includes the uniform application of VAT rates across sectors, standardized invoicing and documentation procedures, and the adoption of advanced technological solutions for VAT monitoring and reporting. By standardizing VAT procedures and leveraging technology, the model seeks to reduce discrepancies and errors, streamline compliance, and enhance transparency. The methodology involves a thorough review of existing literature, comparative analysis of VAT systems in other countries, and case studies of past VAT standardization attempts in Nigeria. The study uses qualitative and quantitative data to evaluate the effectiveness of the proposed model and its potential impact on VAT collection and compliance. The findings indicate that implementing the model could significantly improve VAT collection efficiency and compliance rates, contributing to a more robust and transparent tax system. The paper concludes with recommendations for policymakers on adopting and refining the proposed model, along with suggestions for further research to address ongoing challenges in VAT administration. Keywords:  Model, VAT, Standardization, Nigeria, Enhancing Collection, Compliance.