Senate Redefines VAT Sharing Formula, Prioritizes Consumer Location

Senate Redefines VAT Sharing Formula, Prioritizes Consumer Location

As part of ongoing tax reforms, the Senate has amended the section of the Tax Reform Bill dealing with Value Added Tax (VAT) distribution. Senator Musa clarified that, for revenue-sharing purposes, the "place of consumption" should be understood as the location where the consumer actually uses the goods or services not where the supplier operates.

 This adjustment is aimed at ensuring a fairer allocation of VAT income among states based on consumer activity rather than the point of origin