Financial Q&A: Your Questions Answered
Search our comprehensive knowledge base or submit your own question. We provide clear, practical answers to real financial questions from Nigerian entrepreneurs.
VAT (Value Added Tax)
Showing 5 of 10 results
Can I deregister for VAT?
Yes, you can deregister for VAT in Nigeria, but the process and the implications have changed under the Nigeria Tax Act 2025. In 2026, the threshold for mandatory VAT registration is ₦100 million. If your business was previously registered but your circumstances have changed, here is how you step out of the VAT net.
What is VAT fiscalisation and when does it apply?
In 2026, VAT Fiscalisation is the technical term for the process of connecting your business's sales system (Point of Sale, ERP, or accounting software) directly to the Nigeria Revenue Service (NRS) servers. Under the Nigeria Tax Administration Act 2025, it is no longer enough to just "keep a record" of an invoice; the record must be "fiscalised" (validated and stamped by the government) at the moment the sale happens.
What records must I keep for VAT compliance?
In 2026, VAT record-keeping in Nigeria has moved from "paper in a folder" to a digital-first compliance model. Under the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (NRS) now has the power to request direct access to your electronic accounting records.
Is VAT applicable to digital services?
Yes, VAT is absolutely applicable to digital services in Nigeria. Under the Nigeria Tax Act 2025 (effective January 2026), the rules have been modernized to ensure that whether a service is provided by a local startup or a global giant, it is taxed if it is consumed by someone in Nigeria.
How do I calculate VAT on mixed supplies?
In the 2026 tax environment, the Nigeria Tax Act 2025 has clarified how to handle invoices that contain a mix of different items. To calculate the VAT correctly, you first have to determine if you are dealing with a Composite Supply or a Multiple (Mixed) Supply.