This guide provides an overview of VAT in Nigeria, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Nigeria.
Nigeria doubled VAT from 5% to 7.5% in 2020 to raise more non-oil revenue.
Under the Nigerian VAT Act, a “taxable person” must register for VAT when their annual taxable supplies reach ₦25 million. Businesses can also voluntarily register even if they haven’t hit that threshold, but they must notify the FIRS.
VAT returns must be filed monthly with the FIRS. Non-compliance (e.g., late filing) can lead to penalties.
Input VAT can be reclaimed only on goods purchased for resale or goods directly used in producing taxable goods/services. Input VAT on services, overheads, and capital items is generally not recoverable.
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