Navigating VAT in Nigeria

Q: How often and by when do I file VAT returns?

VAT returns must be filed monthly with the FIRS. Non-compliance (e.g., late filing) can lead to penalties.

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.

Last Updated: March 2026

2020

Nigeria doubled VAT from 5% to 7.5% in 2020 to raise more non-oil revenue.

Nigeria at a glance.

Standard rate

7.5% VAT

Digital services VAT

Yes, at 7.5%

Mandate e-invoicing

Yes

Currency

Nigerian Naira (NGN)

Zero-rated items

Exports, diplomatic purchases, and goods/services for donor-funded humanitarian projects.

VAT format

7 digits

Fiscal representation

No, tax representatives are not required for non-resident businesses

e-invoicing in Nigeria.

e-invoicing in
Nigeria.

Summary of the mandate in this country

B2G mandate in place

Yes

B2B mandate in place

Yes

B2C mandate in place

No

Obligation status: B2B e-Invoicing

Historic

B2B e-Invoicing model

N/A

Name of exchange infrastructure

N/A

Format(s) used

N/A

FAQs

When do I have to register for VAT in Nigeria?

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.

How often and by when do I file VAT returns?

VAT returns must be filed monthly with the FIRS. Non-compliance (e.g., late filing) can lead to penalties.

Can a business reclaim input VAT in Nigeria?

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.

Nearby countries.

Explore indirect tax information in these countries:

Ghana

Kenya

South Africa

The Myth of Marketplace Protection: What Sellers Misunderstand

The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

VAT Reclaim

6 May 2026

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Most Finance Teams Using Brex Are Leaving VAT on the Table – Here’s Why For finance leaders managing spend across multiple countries, recoverable VAT is one of the most consistently overlooked sources of working capital. It sits within existing expense data: travel, supplier invoices, intercompany charges, events, and in most cases, it goes unclaimed. […]

e-Invoicing

5 May 2026

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026 Continuous transaction controls are changing VAT compliance from a periodic reporting exercise into a real-time data exchange between businesses and tax authorities. Instead of issuing invoices, storing records, and reporting VAT weeks or months later, businesses in many markets now need to create, validate, […]

US Sales Tax

28 Apr 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S. For many European and UK companies, economic nexus was a major concern when they first entered the U.S. market. In 2018–2020, the concept was still new, state rules were rapidly evolving, and companies felt […]

US Sales Tax

21 Apr 2026

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison US Sales Tax compliance is one of the most complex indirect tax challenges businesses face today. With 50 states, thousands of local jurisdictions, and rules that vary by product, customer, and sales channel, managing compliance manually is no longer a viable option for […]

e-Invoicing

16 Apr 2026

What is Peppol and How Does It Affect Your Business When e-Invoicing

What is Peppol and How Does It Affect Your Business When e-Invoicing As governments accelerate digital tax compliance and mandate structured electronic invoicing, Peppol has become a central framework for how businesses exchange invoices securely and consistently. If your organisation operates across borders or supplies public sector entities, understanding the Peppol network, Peppol e-Invoicing, […]

e-Invoicing, US Sales Tax, VAT Compliance, VAT Reclaim

15 Apr 2026

9 Best e-Invoicing Compliance Solutions

9 Best e-Invoicing Compliance Solutions in 2026 As governments accelerate digital tax reform, e-invoicing is no longer a process improvement, it is a legal requirement. From real-time clearance models in Europe to continuous transaction controls emerging across the Middle East, businesses must now implement compliant, scalable and future-ready systems. Selecting from the best e-invoicing […]

e-Invoicing

14 Apr 2026

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place As e-Invoicing mandates continue to expand across the globe, businesses can no longer afford to treat compliance as a future issue. For B2B sellers, understanding e-Invoicing requirements is essential to avoiding disruption, reducing risk, and keeping payments moving. In this guide, we break […]

VAT Compliance

9 Apr 2026

Quarterly VAT Return Dates: How to Stay Compliant All Year

Quarterly VAT Return Dates: How to Stay Compliant All Year For most finance teams, a new quarter doesn’t just mean new targets. It signals the start of another VAT reporting cycle, often accompanied by a last-minute rush to reconcile accounts and meet VAT return deadlines. This reactive approach creates unnecessary pressure, increases the risk of […]

Technology-Centered, Expert-Led
VAT Solutions for Businesses.

Experience the VAT IT Compliance
advantage today.

Side Tab Form

"*" indicates required fields

First Name*

Last Name*

Email Address*

Phone Number*

Company Name*

Industry*

Job Title*

Select Service/s*

VAT Compliance

e-invoicing

VAT Reclaim

US Sales Tax

Message

Marketing Consent

I would like to receive expert insights, industry updates, and practical guidance from VAT IT in accordance with GDPR. You can unsubscribe at any time via our emails or by contacting us directly.

By submitting this form, you agree to be contacted by VAT IT and to the processing of your information in accordance with our Privacy Policy and GDPR.