Shipping companies adjust rates to accommodate Nigeria’s new VAT policy

From on the 1st of February, 2020, all shipping charges that warrant Value Added Tax (VAT,) at the Nigerian ports will henceforth be based on the new Federal Government policy of 7.5 per cent and no longer 5 percent.

In an advisory note to its clients base, leading French shipping line, CMA-CGM recently stated that it will be complying with the new Federal Government directive as stipulated in the 2019 Finance Bill Law.

According to the notice which was sighted by the Nigerian Tribune exclusively, “Following the signing of the 2019 Finance Bill into law on the 13th of January 2020, the Ministry of Finance has announced the 1st of February 2020 as the commencement date for the application of the value added tax of 7.5 per cent.

“On this note, please be advised that all charges warranting a VAT charge will be revised from 5% to 7.5% for full compliance with this directive.

“Should you have any questions, please do not hesitate to contact us on.”

Confirming this to the Nigerian Tribune, a Clearing agent Jide Banjoko stated that all the shipping lines have been sending out shipping advisory to their customers on the change in VAT rate.

He said, “Yes, we have been receiving emails from most of the shipping lines on the new VAT rate as it affect shipping charges.

“It is expected since government had already announced it earlier in the New Year,” Mr. Banjoko stated.

David Olagunju

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