VAT stands for Value Added Tax. It is a consumption tax imposed on the value added to goods and services at each stage of the supply chain. VAT is levied on the final consumer and collected by businesses on behalf of the government. The Federal Inland Revenue Service (FIRS) requires that VAT returns are filed on a monthly basis. VAT returns are due by the 21st of the month following the reporting period. A return must be accompanied with a listing of all VATable supplies received and provided. Failure to file a return may incur a fine of NGN 5,000 per month. Failure to remit any VAT due will incur a fine equal to 5% of the liability, plus interest.
Recommended reading: How to Register for VAT in Nigeria in 2023
What are the Requirements for Filing VAT Returns in Nigeria?
- Evidence of payment such as bank teller, e-ticket, e-acknowledgment, etc. from a FIRS-designated revenue collecting bank.
- Completed VAT Returns Form 002 (for individuals, enterprises, and companies).
3. Schedule of VAT collected indicating the: Name, Taxpayer Identification Number (TIN) of the company or individual on whose transaction the VAT was charged, and the related amount.
How to File VAT Returns Online in Nigeria?
Before filing your VAT returns, your business’s financial accounts must be thoroughly examined. A VAT payer must ensure that the VAT returns are reported correctly and completely. Below are the step-by-step procedures for the filing of VAT returns:
- Click here to log in to FIRS Tax Promax portal
- After login into the home page, kindly click on “Taxes Due” and then select the Tax type.
- Under the Action column, click on “Process” to initiate the filing process.
- Complete the sales adjustment schedule, VAT exemption schedule and zero-rated goods and services schedule if applicable.
- Click on “Add Record” and then “Proceed”.
- The VAT form will then load having completed all requested schedules.
- Under “Returning Currency”, select the currency type e.g “NGN”
- Insert the Total Sales/Income Exclusive of VAT
- Tick the box for the declaration form
- Confirm if all entries are correct then click on the submit button to complete the filing process.
- After filing is completed, You will be redirected to the payment page
- If there are VAT liabilities, a payment reference code RRR will be generated and you will be redirected to make an online payment on Remita Platform using your card details. You may also choose to make payment directly in your bank.
Do VAT Returns Have to Be Submitted Online?
In keeping with its mandate to digitize tax administration in Nigeria, the Federal Inland Revenue Service (FIRS) now requires all taxpayers to file and submit their Value Added Tax (VAT) returns exclusively on the updated FIRS e-filing platform https://taxpromax.firs.gov.ng/
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