You have no items in your shopping cart.
ABSTRACT
The study was aimed to examine the empirical relationship between Value Added Tax Revenue and e-commerce in Nigeria. Secondary source of data was utilised, quarterly time series data from 2010 to 2017 was used. Auto Regressive Distributed Lag (ARDL) Model and Vector Error Correction Model (VECM) were employed to analyse the data. From the short run empirical result, previous Value Added Tax Revenue and National Consumption have a positive relationship with the dependent variable (Value Added Tax Revenue). Similarly e-commerce and VAT exemption have a negative relationship with the dependent variable. However Cointegration Bounds Test revealed a long run relationship among the variables, and a long run model was run. The long run empirical result obtained revealed a positive relationship between consumption and the dependent variable, while e-commerce and VAT exemption have a negative relationship with the dependent variable. Error Correction Term obtained confirmed that the model can correct it previous disequilibrium at the rate of 7.6617 percent per quarter. Finally the study recommend that the Revenue Authority should device an efficient means of taxing e-commerce transactions; doing this will not only enhance VAT revenue collection but will also ensure equity among taxpayers. The value of de minimis should be reduce if possible eliminated; elimination of de minimis may reduce direct importation of small items by consumers, thereby protecting domestic consumption base.
