Filing of VAT and taxation

You need to correct one key misunderstanding first:

👉 VAT in Nigeria is NOT filed yearly.

👉 It is filed monthly, and the deadline is the 21st of the next month.

So:

January VAT → due 21st February

February VAT → due 21st March

etc.

The 31st March deadline you saw is NOT for VAT—it’s for things like:

Company Income Tax (CIT)

Annual Returns (CAC)

1. Who Must File VAT

You must file VAT if:

You run a registered business (individual or company)

You sell goods/services subject to VAT (7.5%)

Even if: 👉 You made no sales, you must still file “NIL return”

2. What You Should Do Right Now (2024 & 2025 Backlog)

Since you haven’t filed:

👉 You likely have outstanding monthly VAT returns

For example:

2024 → 12 months

2025 → Jan till now

3. Step-by-Step: How to File VAT in Nigeria

You file through the tax authority:

👉 Federal Inland Revenue Service

Step 1: Get Your TIN

You need:

Tax Identification Number (TIN)

If you don’t have one:

Register via FIRS or CAC

Step 2: Access the Filing Portal

Use: 👉 TaxPro Max

This is the official system for VAT filing.

Step 3: Prepare Your Records

For each month, calculate:

Output VAT (what you charged customers)

7.5% of your sales

Input VAT (what you paid on purchases)

VAT on expenses

VAT Payable:

👉 Output VAT – Input VAT

Step 4: File Monthly Returns

On TaxPro Max:

Select month (e.g., Jan 2024)

Enter:

Sales

VAT collected

VAT paid

Submit return

Step 5: Pay (If Applicable)

If VAT is payable:

Generate payment reference

Pay via bank or online

4. Penalties You May Face

Since you didn’t file on time:

Late Filing Penalty:

₦50,000 (first month)

₦25,000 for each additional month

Late Payment:

Interest + penalties

5. What If You Didn’t Do Any Business?

Very important:

👉 You STILL must file

Just file:

NIL VAT return

This avoids penalties.

6. Best Practical Approach (Since You’re a Beginner)

Don’t try to fix everything blindly.

Option A (Recommended)

👉 Meet a tax consultant/accountant

They will:

Compute your backlog

File correctly

Reduce errors/penalties

Option B (Do It Yourself – Carefully)

Start with:

2025 (current year)

Then go back to 2024

7. Simple Example

If in January:

Sales = ₦500,000

VAT (7.5%) = ₦37,500

Expenses VAT = ₦10,000

👉 Pay: ₦37,500 – ₦10,000 = ₦27,500

8. Critical Advice (Don’t Ignore This)

Don’t guess figures

Don’t skip months

Don’t ignore penalties (they accumulate)

👉 The earlier you regularize, the cheaper it is.

Bottom Line

VAT is monthly, not yearly

You likely have multiple unfiled months

Use TaxPro Max to file

Consider a professional to clean it up

let’s do this practically and clearly, as if we’re filing one real month together on the FIRS system.

We’ll use a simple example so you can follow and repeat for other months.

✅ What We Are Doing

We will file one month VAT return using:

👉 TaxPro Max

From: Federal Inland Revenue Service

🧾 Step 0: Gather Your Numbers (Before Logging In)

You need 3 things for that month:

1. Total Sales (Revenue)

Example:

₦500,000

2. Output VAT (VAT you charged customers)

👉 7.5% of sales

= ₦37,500

3. Input VAT (VAT you paid on expenses)

Example:

₦10,000

💻 Step 1: Log Into TaxPro Max

Go to TaxPro Max portal

Enter:

TIN

Password

👉 If you don’t have login yet, tell me—I’ll guide you.

📂 Step 2: Start VAT Filing

Inside dashboard:

Click “Returns”

Select “VAT Return”

Choose:

Tax Type → VAT

Period → e.g. January 2024

✍️ Step 3: Fill the VAT Form

You will see fields—fill like this:

A. Total Supplies (Sales)

Enter: 👉 ₦500,000

B. Output VAT

Enter: 👉 ₦37,500

C. Input VAT

Enter: 👉 ₦10,000

D. VAT Payable (Auto or Manual)

Formula: 👉 Output VAT – Input VAT

= ₦27,500

📌 Step 4: Validate & Submit

Click Validate

Confirm figures

Click Submit

👉 At this point: Return is filed

💳 Step 5: Payment (If You Owe VAT)

If VAT payable = ₦27,500:

Click Generate Payment Reference (RRR)

Pay via:

Bank

Online (Remita)

🟢 If You Had No Business (Important Case)

If:

No sales

No VAT

Then:

Enter:

Sales → 0

Output VAT → 0

Input VAT → 0

👉 Submit as NIL return

⚠️ Common Mistakes to Avoid

❌ Entering sales INCLUDING VAT (wrong)

❌ Forgetting to file months with zero activity

❌ Guessing numbers

❌ Skipping validation

🧠 Simple Way to Always Remember

Think:

Sales → what you earned

Output VAT → what you collected

Input VAT → what you paid

Pay the difference

📊 Quick Recap Example

Item

Amount

Sales

₦500,000

Output VAT

₦37,500

Input VAT

₦10,000

VAT Payable

₦27,500

👍 What You Should Do Next

Try filing one real month now

Start with:

The most recent month (e.g., Jan or Feb 2025)

Then move backward

See less