Value Added Tax (VAT)

Scope of coverage

All entities dealing on taxable supplies.

Rate of Tax

The rate is 7.5% of all VATable invoices with exemption for entities (Small Businesses) with turnover below N25 million.

Enabling laws

Value Added Tax Act Cap V1, LFN 2004, as amended to date.

Recent Amendments –

  1. Increase of VAT rate from 5% to 7.5% (from 1st February 2020)
  2. Penalties associated with failure to register; file & notification of cessation/change of address is N50,000 in the first month of default and N25,000 for subsequent months of failure.
  3. N25 Million-Naira turnover threshold as the basis for charging and remitting VAT.
  4. VAT is now remitted on Cash Basis
  5. Non-Resident Companies are now expected to register for VAT and also to include VAT on their invoices.
  6. The duty to self-charge or self-account for VAT is now an additional responsibility for taxpayers.

Filing obligations

21st day following the month of transaction

Associated Penalties
Non-filing of returns

The Failure to file is N 50,000 for the first month of default then N 25,000 for the subsequent months in which the default continues.

Non-payment of taxes

Penalties at 10% and interest at the prevailing Market rate;

Available Reliefs

INPUT VAT claim on goods purchased for re-sale; furthering production processes; raw materials other than those of a capital nature.

Kindly click the link below to download the Value Added Tax Law

DOWNLOAD VAT LAW

SIAO VAT CALCULATOR

=N=
Value Added Tax: =N=

Helping businesses just like yours

For expert guidance and know-how you can trust SIAO
CONTACT SIAO
Browse SIAO
SIAO

SIAO is an independent Nigerian professional services firm, providing Audit & Assurance, Accounting, Tax, International Financial Reporting Standards Advisory, Human Resource, and Financial Advisory Services.

OUR SERVICES
CONTACT SIAO
ABUJA OFFICE

1st Floor, Bank of Industry Building Tower 1,
Central Business District Area, Abuja.

Tel: 02092912463,
Tel: 02092912462

CONTACT SIAO
LAGOS OFFICE

18b Olu Holloway Road,
(Former Temple Road),
Off Kingsway Road,
Ikoyi,
Lagos.

Tel- +2347015180258