Taxation has long been practice in Nigeria decree No 7 (1986) initially, only men were expected to pay taxes but now all person working and anybody found in the capacity of paying tax obtained to pay tax. Tax is a mandatory levy on income changed for the purpose incurred by the government in recent times through tax evasion are increasing rapidly despite the pathetic financial and economic state of the country.  There are daily reports on newspapers and magazines that the government loses billion of Naira yearly due to evasion and the fraudulent practices of the tax officials.  This has been attributed to many factors.  Most people attribute this to the fact that the country’s tax system is highly income based and since income is taxed only at one point or stage a lot of evasion results. In Nigeria, many different goods are consumed for this reason, tax experts see consumption as the actual liability and as the need to shift the tax based from income tax to consumption tax.

Introduction of sales tax in Nigeria through decree no 7 of 1986. However it was discovered that sales tax is narrow because it does not cover a lot of goods and services.  This prompted the introduction of Value Added Tax (VAT) in Nigeria. The idea of introducing vat in Nigeria came from the report of the study set up by the federal government in 1991 to review the entire tax system.  Vat was proposed and a committee was set up to carry out feasibility studies on its implementation.

In January 1993 government agreed to introduce vat through the instrumentality of the vat decree no 102 of 1993.  This was meant to be effective from January 1, 1993 it came on stream as a replacement to its antecedent the sales tax which was characterized by a lot of lapse adequacies and restrictive coverage. Vat is a consumption tax imposed on all manufactured goods, industrial raw materials and other inputs imported in to or produced in Nigeria a single rate of five percent.  Potentially its dragnet covers virtually everybody since one consumes on thing of the other expect in the cases of specific items that are expected several benefits which the government expected to derive from value added tax (VAT) were enumerated among several other, they are:
i.          Increase in revenue generation
ii.         Facilitation of administrative enforcement
iii.        Reduction in revenue losses through tax evasion
iv.        Enhancements of documentation of transitions maintenance of neutrality in tax payment since it is broad based and has a single rate.
v.         Enhancement if rapid industrial growth by allowing credit for input taxes for capital goods.
The government has covered these benefits to the public and has also organized working and seminars to educate the producers, suppliers, consumers, tax officials and the general public on vat system in Nigeria. However, the perception of the taxpayers is necessary at this stage and this is what this research is set to find out.
The federal government has made frantic exports to convince the public of the need for vat system in Nigeria.  It has been informed the public of the benefits which have been derived from vat for example a reduction in the tax evasion increase in government revenue and so this implies that the government sees vat as a good tax system.  That the taxpayers may not have the same view as the government.  They may not see the relevance of the taxes in which case they will most definitely the reluctant to pay the problem or the question therefore is
1.   What is the perception of the tax payers or the public on this tax system?
2.   Do they see it as being import as the government dose?
3.   Do they see it, as one that is fair and equitable is the burden less felt than other tax system?
It is in view of the above questions that the researcher has decided to find out and evaluate the perception of the public or taxpayers on the value added tax in Nigeria.
It was the purpose of this study to evaluate the view of the tax payers on value added tax on the basis of this the researcher will able to say if vat has done more human than good of the part of the taxpayers.  The finding will also enable me to marked recommendations that will bring about modifications if necessary that will strengthen the machinery for the administration of vat and also lead to its acceptance be the public.
Every research work has to be significant it must either create some firm of new knowledge or add to an already existing body of knowledge to them and this will serve as an information to the government to know the perception if the tax payers accept or disagree with vat.  It will also reveal areas in the vat systems that require corrections in order to achieve more effective and efficient tax system very importantly apart from enlightening the general public on the practice of vat in Nigeria, it will serve as a source of data to other researchers.
For the information presented a research work to be clearly understood and appreciate, a systematic and chronological presentation of the work is of great importance.  Keeping with this the research has been organized and presented in five chapters . The introductory chapter and it improves the reader on what the entire study is about according to Oche C. A. (1994 : 5) chapter specifies the problems that promoted the study and limitations of the study the assumptions of the study and the operational definition of terms.  Chapter two:  This contains the review of all related literature or previously existing materials on the subject.  The chapter establishes clearly the nature of the already existing body of knowledge through ideals.
Concepts on the subject, thereby highlighting the new knowledge to be generated by the research. Chapter three information on the methods employed in the collection of data and their analysis can be found in this chapter also in the chapter justification provided for the adoption of the methods and analytical techniques employed.  Chapter four, this involves the presentation and analysis if data findings, from the testing of hypothesis are also presented here.  Chapter five, this is the final chapter and it contains the summary of the entire work done the conclusion drew and the recommendation made by the researcher based on the findings of the research work. Appendices:  It is practices that in the final pages of a research work of same document such as the questionnaire relevant able students.  Letter and so on attached for a better appreciation of the research work by the research.  This can also serve as a mean of verification of the work done.
The questions below are to be answered in the course of this work.  If at the end of this research appropriate answers are provided to these questions.  The aim of the research shall have been realized the questions are:
1.      To what extent has vat curbed tax evasion?
2.      To what extend has the government been able to generate expected revenues?
3.      Is the administration of vat in Nigeria perceived to be efficient?
4.      To what extents vat a good replacement of sales tax?
5.      Is vat a fair and equitable tax?
6.      What impact does vat have in the revenue generation of the government?
7.      Has the institution and implementation of vat affected the consumption liabilities of consumers?
a.      Vat:  this is a consumption tax which is charged at 5% on goods and services which are not exempted by the vat degree of 1993.
b.      Vatable Goods: These are goods and services on which vat is paid.
c.      Suppliers:  This refers to any transaction whether it is the sale of goods or the performance of a service for a consideration.
d.      Vatable person:  One who trades in vatable goods or services for a consideration.
e.      Output vat:  This is the vat that is due on vatable supplies. It is derived by multiplying the tax values.  If the aggregate supply by the tax rate.
f.       Input vat:  This is charge on business purchase and expenses.
g.      Federal inland revenue service (FIRS):  This is the authorized body for the collection of taxes.
Nobody can claim to have knowledge of any access to everything.  Or can anybody claim he can get whatever he want at anytime be wants it.  This study therefore, cannot be excluded from these limitations, which are stated below.
(1)  Finance required for an extensive works are not available and I had to concentrate on specific areas.
(2)  There will be no access to some information due to restriction in the organizations concerned.
(3)  The possibility of inaccuracies in responses cannot be ruled out.
(4)  Time factors was another important limitation, according to Baridam (1980) people who make up organizations may be have differently if they become aware of the researchers hypothesis about them these people being human being are always sensitive to their environments.  “Such awareness according to Behiling (1980 : 486) may create self fulfilling properties were by participant charge their behaviour to increase the chances of supporting the hypothesis. However, inspite of these problems relent information were got from the respective bodies.