Nigeria’s Federal Inland Revenue Service (FIRS), on Tuesday engaged large taxpayers on integration of Merchant Buyer Solution (FIRSMBS) e-Invoicing system as part of its sustained enlightenment initiatives to promoting transparency and accountability in federal tax administration in the country
The revenue agency disclosed that e-invoicing, which leverages the Universal Business Language (UBL) framework, would facilitate the seamless creation, validation, and exchange of electronic invoices and align the nation’s tax system with global best practices.
Delivering his keynote address at its stakeholder forum on the implementation of the national e-Invoicing solution in Lagos, the Executive Chairman of the FIRS, Dr. Zacch Adedeji, said the new solution would effectively replace old methods of paper transactions in federal tax administration.
The tax administrator, who was represented at the event by his the Chief of Staff, Tayo Koleosho, said the FIRSMBS (eInvoice) represented a digital representation of transactions between suppliers and buyers, effectively replacing traditional paper or electronic documents such as invoices, credit notes, and debit notes.
He explained that the platform had the capacity of unifying data in silos, providing insights into supply chains, purchasing trends, and business transactions, which will help policymakers to be proactive in data-driven fiscal and economic decisions.
The FIRS boss’ represenative expatiated: “So, when we even talk about distributions, and where are goods being supplied, where are they going, what kind of things are we buying as a country? All these are data that are currently in silos, and there is no unifying place where we can see this.
“This is going to help us to aggregate a lot of data, buying patterns, supply patterns, manufacturing patterns, what kind of invoices, what kind of businesses are buying what, are supplying what. All this data will then help our policy and legislative and executive to start making more data-driven decisions.
“So that’s how we believe it’s going to help. So the government can then know and have more data to make decisions on where the impacts are going to be, where the focus should be, as we move along as a country”, Koleosho added.
On why the engagement was organized with the large taxpayer, Koleosho said that the forum was intended to meet with the large taxpayers and understand what their own requirements are, as Service continues its journey into what it calls a Tax Administration Solution 3.0, where there will be more integration with the electronic reporting systems, the POS systems, and all the other cloud solutions.
According to him, this will help in making businesses more efficient so that they can have a better integration and exchange of data with the tax administration, and also provide more data for their business, and make intelligent decisions for their businesses, and even for the country to make both fiscal and monetary policy decisions.
Speaking on the e-Invoicing solution, the FIRS’ Coordinating Director, Large Taxpayers Group, Amina Ado, said it was designed to provide real-time visibility into business transactions, recalling that the FIRS has embarked on the implementation of a National E-Invoicing Solutionwith a view to providing real-time visibility into business transactions and financial data.
The Director maintained that the initiative was a strategic step taken by the FIRS’ management to foster efficiency, transparency, and accountability in the nation’s tax administration system.
Ado said: “Our engagement today serves as an important platform for dialogue, collaboration, and shared insights as we navigate the pilot rollout of this solution. The e-invoicing system is not just a technological innovation but a strategic enabler that aligns with international best practices, ensuring seamless tax compliance, reducing revenue leakages, and enhancing ease of doing business in Nigeria.”