2024 VAT Modification Order: Key Changes to Promote Clean Energy & Sustainability
Explore the key updates in the 2024 VAT Modification Order, expanding VAT-exempt goods and services to promote clean energy, electric vehicles, and petroleum products.
The Value Added Tax (Modification) Order, 2024, implemented on September 1, 2024, introduces significant updates aimed at promoting clean energy, sustainability, and advancing Nigeria’s economic sectors. Signed by the Honourable Minister of Finance, this new VAT framework expands VAT-exempt items and services, particularly in sectors related to electric vehicles, compressed natural gas (CNG), and liquefied petroleum gas (LPG).
Key highlights include:
- Expanded VAT-exempt goods: Electric vehicles, CNG/LPG equipment, biogas, and domestic LNG facilities are now VAT-exempt.
- New VAT-exempt services: Conversion and installation services for CNG and LPG, along with electric vehicle manufacturing, are exempt from VAT.
- Revised definition of petroleum products: The new definition clarifies the VAT application for petroleum products like household kerosene and imported LPG.
- Extended list of VAT-exempt items: The order introduces 63 new VAT-exempt items, reflecting the government’s dedication to clean energy and sustainability.
Understand how the 2024 VAT Modification Order impacts your business, promotes sustainability, and supports Nigeria’s clean energy future. Download the full article to explore the complete list of VAT-exempt items and services.
