ABSTRACT

 The study focused attention oil (VAT) being collected arid accounted lhr by the I 'edera I nlaiid Revenue Service (II RS) and aimed at contributing to the means of' increasi ig the annual generation of revenue in Nigeria, Value Added Tax (VAT) was inirodiced to replace sales tax. It is however, based on the general consumption pattern of the populace, hence a higher yield to boost the revenue of the government (stale in particular) without much resistance and antagonistic behaviour from the tax payers (final consumer). In fact, Some consumers may not know when they pay such lax, So, it may not be an exaggeration to say that VAT is horn as a "child of necessity" and the outcome of this research will justify, condemn or even suggest a modified incidence of VAT in Nigeria as regards its revenue generation. However, in is study, collect ion of data were from primary and secondary sources with the former being from Federal Inland Revenue Service (FIRS) Urnuahia, Ahia State wi Ic the latter includes infornuition and review of available documents such as seminar papers, newspapers and text books, journals and other business publications. findings were made which included that if the people (importers and manufacturers) are adequately informed on operations of the (FIRS) it will enhance revenue generated because the attitude of importers especially smugglers hinders revenue officers especially custom officers from collecting the required revenue from VAT. Resulting from the findings and other findings such as unqualified VAT officers and lack of' eliective working tools P.r the VAl' officers, the following recommendations were made- government should encourage the men of the (FIRS) and Nigerian ( usloins Service (NCS) by providing adequate training facilities and equipment like f'Llly installed computers and vehicles to enhance movement of officers from one duly f)ost to another as well us motivation to help improve their performance There should be strict measures and government policies that will help the revenue agents chat smuggling.