THE PROBLEMS IN ADMINSTRATION OF VAT IN NIGERIA
ABSTRACT
In this study the objective of the researcher is to find out the problems of Administration of VAT in Nigeria, VAT is one the major sources of government revenue.  To do this the researcher was able to discover that the following were some of the problems militating against administration of VAT in Nigeria.
a.                   Problem of non-compliance of government services industries.
b.                  Failure of some state such as Sharia States to comply by opposing payment of VAT on alcohol.
c.                   Inadequate Vat Zonal Offices in the country who can proper regulates VAT.
To solve these problems some hypothesis were put up to guide during the research work.  Literature review and some reference were made to relate the problem of Administration of VAT in Nigeria by the researcher in the chapter two of the work.
The researcher then used hypothesis, method of data collection, sources of data and location of data for collecting necessary information required in the chapter three of the work   
In chapter four, the researcher presented and analyse the data gotten.  Also the hypothesis put up were vividly tested under this chapter.
Finally, at chapter five, the researcher after everything summarized the findings from the data gotten.  And resolved into making reasonable conclusion before recommending at last.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1              Statement of problem and purpose of the study
1.2              Rationale of the study
1.3              Significance of the study
1.4              Background of the study
1.5              Definition of terms
CHAPTER TWO
2.1              History of taxation and evolution of VAT in Nigeria
2.2              Administration policy VAT
2.3              The Vat technical committee and it’s function
2.4              Vat account and records
2.5              Vat audit and investigation
2.6              Vat operations in banks and financial institution
2.7              Problems of Vat in Nigeria
CHAPTER THREE
3.1              Hypothesis
3.2              Method of data collection and analysis
3.3              Sources of data and location of data
3.4              Limitations of the study
CHAPTER FOUR
4.1              Data presentation
4.2              Data analysis
4.3              Discussion of results of analysis                               
CHAPTER FIVE
5.1              Summary
5.2              Conclusion
5.3              Recommendation
5.4              Bibliography
CHAPTER ONE
INTRODUCTION
1.1              STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY
Tax from time immemorial has been the major source of revenue in Nigeria, but when we reflect back on efficiency and effectiveness of taxation system we could easily see that tax has met with a number of difficulties in Nigeria especially in the area of tax evasion and avoidance.  Because of this problem militating against the tax system in Nigeria and problems peculiar to Vat administration policy, the federal government in 1991 set up a study group which was led by Sylvester Ugo to recommend the introduction of VAT in Nigeria.  Also in 1992, a modified Valued Added Tax committee led by TAE B.I. Ijewere was set up to carry out feasibility study on the implementation of Vat and how to solve the problem in Nigeria.
What I want to investigate is the problem in administration of Vat in Nigeria.  Why Vat is so difficult in administering in Nigeria economy.  They are:
1.                  Evaluate the extent of coverage in the country.
2.                  Suggest on how Vat can be          administered in the country.
3.                  Highlight the administration, efficiency and effectiveness of VAT in Nigeria.
1.2              RATIONALE OF THE STUDY
If this study is successful conducted it will enhance efficient administration of Vat in Nigeria and also see that all the problems hindering Vat administration will stop in Nigeria.  For the more, if this study is successful conducted more income will be generate from VAT which will help to improve the economy of Nigeria.
1.3              SIGNIFICANCE OF THE STUDY
Vat is one of the fiscal policy by government to generate funds for the welfare service of the population.  The significance of the research helps to explain the various Vat activities and access the extent to which they have been administered.  It also shade light on the efficiency and effectiveness of the administration of Vat and its benefit in Nigeria.  Vat is a tax imposed on consumable goods and services.  It has a built in self-assessment mechanism that allow a business to claim credit for tax paid on it’s input such as withholding tax.
1.4              BACKGROUND OF THE STUDY
It has been widely believed that every nation, irrespective of its status in the global economy aspires a major goal and enhances the economic well being of its citizens within it’s area of jurisdiction.  The nations goal can only be achieved through economic growth and development, which is attended by provision of social amenities.  Since the responsibilities and duties of every government is quite enormous, however, the problem remains how does the government generate resources to fund their activities.
The government being a non-profit making organization by nature does not make profit and so needs to generate revenue from tax and other revenue.  A tax system should encourage efficient and full use of a nation productive capacity without hinder allocation of resources.  It should yield the revenue needed to finance whatever government operation decided on without hindering economic growth and stability.
There are two major kinds of tax.  The direct and indirect tax.  In direct taxation, it is a kind of tax that imposed directly upon or on the property of the person paying the tax.  In the case of indirect taxation, the payer is different from the person who bears the burden of the tax.  Under indirect tax VAT comes in when taxes have been imposed on goods and services and the burden is transferred to another, most levies are paid which the Value Added Tax proceeds.  In realization of the above, the study group on indirect taxation recommend the introduction of VAT in 1993 by the Vat Decree 102 of 1993.  this Decree was executed on 1st September 1994.  Value Added Tax replaced sale tax and was introduced as a means of generating additional on oil revenue.  Thus, for the government to meet growing public expenditure in the short run, it can only be derived from taxation hence the introduction of VAT.
1.5              DEFINITION OF TERMS
VAT which full name is Value Added Tax is the tax added to the price of goods and services.  It is imposed on consumable goods and services.  Example of goods which VAT can be imposed on are cigarette, MTN Rechargeable Card etc.
Administration:         It is day to day running affairs of government.  It means how government plan, organize and control their activities in the country concerning issue of VAT.
Fiscal policy:  Means a deliberate government policy which is designed to change the level of government expenditure or varying the level of taxation or both, for the purpose of achieving some desired economic objectives.  Fiscal policy is implemented through changes in the budget.
Problem:        In this study means all the factors that militate against the administration of the VAT in Nigeria.  Things that mabs VAT to be difficult in administer.  Some factors that militates against VAT in Nigeria are: failure of some state such as shown states to comply, by opposing payment of Vat on alcohol and problem of non-compliance of government services industries like NEPA, NPA etc.
Economy:       In this study means the relationship between production, trade and the supply of money in a country.  It is also concern about how to run a particular country without waste or spend available resources.
Global:           It means that something is operates all around the world.  That’s VAT is being administer red all around the world not only in Nigeria.
Allocation:      Is an amount of money people or a government collects for a particular purpose.  In every country there is allocation which is been given to their people.  In Nigeria for instance federal, state and local government collects allocation from VAT.  The allocation state or local government receives helps then to improve their economic condition.
Evaluation:    Means to suggest or make an opinion of on a value or quality of a thing after carry on an examination carefully for instance in this study that I am conducting to evaluate means that after research I will known what VAT is saying in about and how well it will be administrate in Nigeria.
Efficiency:      It means how administration of VAT in Nigeria should be carried without much spending of time and money.  How it will be improve the economy of the country very well.
Hindering:      Means all the problems the milililate against administration of VAT in Nigeria.  Some factors that makes administration of VAT in Nigeria to be so difficult is high imposed of price on goods and services.
Economic growth:     This is a rapid and sustained rise in real output per head and attendant shifts in technological, economic demographic characteristics of a society.