ABSTRACT:- This study was carried out to empirically examine the issues and implications of implementing VAT on e-transactions in Nigeria. The survey research design was adopted for the study. The population of the study comprised FIRS Officers, tax researchers, tax practitioners, as well as operators and clients of e-transaction activities in Nigeria. A sample of 125 respondents selected from each of the afore-mentioned population categories using the convenience approach and a structured 5 point Likert scale questionnaire was administered. The responses in the 117 copies of questionnaire which were returned by the respondents were tabulated and frequencies, simple percentages and rankings were used to analyse the responses. The findings, among other issues, highlighted poor implementation of existing tax laws as well as the need to modify and update tax laws as the major challenges of implementing VAT on e-transactions in Nigeria. It is recommended that Government should intensify its effort in making new relevant laws, updating existing ones and ensuring proper implementation of the laws. Also, adequate taxpayer education on the modalities and essence of the e-transactions VAT should be spearheaded and sustained. A dynamic system of compensation should be designed as an encouragement cushion for those who comply with the VAT.

Keywords: Value Added Tax, e-transactions and taxation