The partnership to be known as VAT Direct Initiative, will enable the collect VAT from the informal sector and reduce multiple taxations in the informal economy.
In a statement shared on its Twitter handle, the tax agency said a unified systems technology would be deployed for the scheme.
The Initiative, according to the agency, is the first of its kind that will utilise technology to foster collaboration between the FIRS and the marketplace for the collection and remittance of VAT.
It noted that the collaboration will see MATAN promote awareness on VAT collection and remittance in the marketplace and informal sector, while also simplifying VAT payment and remittance for the marketplace and informal sector using a purpose-built digital platform.
The agency said it would leverage MATAN’s digital platform that enumerates its members giving them a digital ID card and tracks their turnover so that VAT accrued is collected and remitted to the FIRS.
FIRS says this will help tackle multiple taxations in the marketplace through partnerships with security agencies to curb the activities of touts and self-imposed tax collectors.
It further noted that it will also boost VAR revenue generation for the three tiers of government, which in turn means more money to fund infrastructure, provide social amenities and cater for the welfare of citizens.
