ASSESMENT OF IMPACT OF E- COMMERCE ON VALUE ADDED TAX REVENUE GENERATION IN NIGERIA (A CASE STUDY OF INTERNAL REVENUE GENERATION OYO STATE)

This study investigates the impact of E-commerce on Value Added Tax (VAT) revenue generation in Nigeria, with a focus on internal revenue collection in Oyo State. As online commercial activities continue to expand, especially among small and medium enterprises, concerns have emerged regarding the adequacy of existing tax frameworks to capture VAT from digital transactions. The study examines how E-commerce influences VAT performance, the challenges in enforcing compliance among digital vendors, and the role of tax administration in adapting to the evolving digital economy.NA descriptive survey research design was adopted, and data were collected from 150 respondents, including officials of the Oyo State Internal Revenue Service (OYSIRS), e-commerce vendors, and digital consumers. The data were analyzed using descriptive statistics and inferential analysis through Analysis of Variance (ANOVA). Findings reveal that E-commerce has a statistically significant positive impact on VAT revenue generation. However, limitations such as weak digital infrastructure, limited awareness, vendor non-compliance, and legal gaps hinder effective VAT enforcement in the digital space. The study concludes that while E-commerce provides an opportunity to enhance internally generated revenue, its full potential remains underexploited without a robust legal, administrative, and technological framework. The study recommends the adoption of digital tax systems, reform of VAT legislation to accommodate digital activities, strategic partnerships with online platforms, and increased taxpayer education. These measures will ensure more inclusive, transparent, and efficient VAT collection mechanisms for Oyo State and beyond. Keywords: E-commerce, VAT, Revenue Generation, Digital Taxation, Oyo State, Nigeria