Ondo State Internal Revenue Service Denies Collecting VAT From Hoteliers

Ondo State Internal Revenue Service (ODIRS) has told hoteliers in the State that it only commenced collection of Consumption Tax and not Value Added Tax.

Some hoteliers had written to the ODIRS that they would wait for the court to make a pronouncement on who is responsible for collecting VAT before making any payment.

Chairman of ODIRS, Mr Tolu Adegbie, who spoke at a briefing in Akure, said the State could start collecting VAT if the case is won in favour of the States.

MmAdegbie said the state Consumption Tax law was passed in 2019 but was suspended in 2020 due to COVID-19 outbreak.

Adegbie stated that hoteliers and others were finding it difficult to believe that consumption tax is different from VAT.

” The implementation of consumption law has started now. We have written to hotels in the state but some are still confused saying that this tax is the same as VAT.

” They are not. While they may both be Consumption Tax. One is based on sales while other is on value on transaction. This is only on hotel and restaurant.

” So those hotels writing to us that VAT case is in court should know that this one is not in court. It’s not subjected to litigation, ” he explained.

The ODIRS Chairman also disclosed that over 80 per cent of intra-state commercial drivers did not have valid driver’s licence.

Adegbie said the compulsory registration ordered by the state government to address insecurity and criminalities uncovered those without valid driver’s licence.

He said 64 per cent of private vehicle owners in the state did also not have valid driver’s licence.

Senior Special Assistant to Governor on Special Duties and Strategies, Dr. Doyin Odebowale, said that the government would commence impounding of unregistered vehicles as well as prosecuting those without valid driver’s licence.

” The enforcement is immediate. We have given four months for commercial vehicle drivers to register their vehicles and we can’t extend it.

” About 800 commercial vehicles have registered so far and your vehicles must be painted in the colour of the state.

” And it is not only commercial vehicles but those private vehicles without valid papers will be impounded,” he stated.