VAT Return Form (Nigeria)
MONTHLY VAT RETURN — FORM 002
Value Added Tax Act (Cap V1, LFN 2004) as amended | Federal Inland Revenue Service (FIRS)
Business Name: [Business Name]
TIN: [TIN] | VAT Registration No.: [VAT Reg Number]
Return Period: [Return Period]
Date of Filing: [Filing Date]
SECTION A — OUTPUT VAT (SALES)
Standard-Rated Supplies (7.5%): NGN [Standard Rated Sales]
Output VAT Collected: NGN [Output VAT]
Zero-Rated Supplies: NGN [Zero Rated Sales]
Exempt Supplies: NGN [Exempt Sales]
VAT Withheld by Withholding Agents: NGN [VAT Withheld By Agents]
SECTION B — INPUT VAT (PURCHASES)
Domestic Purchases (VAT-registered suppliers): NGN [Domestic Purchases]
Input VAT on Domestic Purchases: NGN [Input VAT Domestic]
Import VAT (Nigerian Customs Service): NGN [Import VAT]
Total Recoverable Input VAT: NGN [Total Input VAT]
SECTION C — NET VAT PAYABLE
Net VAT Payable to FIRS: NGN [Net VAT Payable]
Excess Input Credit Carried Forward: NGN [Excess Input Credit]
Net VAT payable must be remitted to FIRS on or before the 21st of the following month via the FIRS e-Tax portal or authorised commercial banks, in accordance with Section 15 of the Value Added Tax Act (Cap V1, LFN 2004).
DECLARATION
I, [Signatory Name], [Signatory Designation] of [Business Name], declare that the information contained in this VAT Return for [Return Period] is true, accurate, and complete to the best of my knowledge and belief, and that all output VAT disclosed has been collected and all input VAT claimed is properly supported by valid VAT invoices and import documentation.
Signed on [Filing Date].
Authorised Signatory
________________
Signature
What Is a VAT Return Form (Nigeria)?
A VAT Return Form in Nigeria records the income, deductions and tax due for the period it covers.
The VAT return mechanism operates on the credit-offset (invoice-credit) method: the taxable person charges output VAT at 7.5% on all taxable supplies made to customers, and simultaneously recovers input VAT paid on goods and services purchased and used in making those taxable supplies. The net amount — output VAT minus recoverable input VAT — is remitted to FIRS by the 21st of the following month. Where input VAT exceeds output VAT in any month, the taxable person has an excess input credit that may be carried forward to offset future VAT liabilities or, subject to FIRS approval, refunded under Section 16A of the VAT Act as amended by the Finance Act 2021.
The Finance Act 2020 introduced the NGN 25 million annual turnover threshold below which small businesses are exempt from VAT registration and monthly filing, reducing compliance burdens on micro and small enterprises. The Finance Act 2021 further amended the VAT Act to require withholding of VAT by government agencies, public sector contractors, and large companies designated as VAT withholding agents by FIRS, creating an additional layer of compliance reporting in the monthly VAT return.
The FIRS Electronic Fiscal Receipting and Invoicing System (EFRIS), being phased in since 2022, requires large taxpayers — defined by FIRS as companies with annual turnover exceeding NGN 100 million — to issue VAT invoices electronically through the FIRS EFRIS portal, automating the reporting of output VAT in real time and reducing the risk of under-reporting. All monthly VAT returns must be filed electronically through the FIRS e-Tax portal under the FIRS Electronic Filing Regulations 2015.
The legal framework governing the VAT Return Form (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a VAT Return Form (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies and Allied Matters Act (CAMA) 2020 sets the foundational requirements.
When Do You Need a VAT Return Form (Nigeria)?
A VAT Return Form must be filed monthly in Nigeria by every business registered for VAT with FIRS, covering the preceding calendar month's taxable transactions.
A VAT return is required on or before the 21st of each month for the preceding month's transactions, regardless of whether the taxable person made any supplies or incurred any input VAT during the month — a nil return must be filed where there were no transactions, to avoid late filing penalties under Section 27 of the VAT Act.
A VAT return is needed when a company has collected output VAT from customers during the month at 7.5% and must remit the net amount — after deducting recoverable input VAT — to FIRS through the FIRS e-Tax payment portal or authorised commercial banks.
A VAT return is required when a business has been designated as a VAT withholding agent by FIRS and has withheld VAT on payments to suppliers during the month. The withheld VAT must be remitted to FIRS and reported in the VAT return under the VAT withholding regime introduced by the Finance Act 2021.
A VAT return is needed when a company has imported goods and paid import VAT to the Nigerian Customs Service (NCS) and wishes to claim the import VAT as recoverable input credit in the monthly VAT return, subject to production of customs import entry documents (Form M) and evidence of payment.
A VAT return is required when a business has made zero-rated exports during the month and wishes to claim a VAT refund from FIRS on the input VAT incurred in producing the exported goods or services, by declaring the zero-rated supplies in the monthly return and supporting the claim with export documentation.
Parties in Nigeria should prepare a VAT Return Form (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your VAT Return Form (Nigeria)
A Nigeria VAT Return Form (Form 002) must contain the following essential elements to comply with the Value Added Tax Act (Cap V1, LFN 2004) and FIRS e-filing requirements.
Taxpayer Identification: Full legal name, Tax Identification Number (TIN), and VAT registration number of the filing business. The TIN and VAT registration number must match the records in the FIRS Integrated Tax Administration System (ITAS) to avoid rejection of the electronic return.
Return Period: The specific calendar month (e.g., January 2025) to which the return relates. VAT returns are monthly — a single return covering multiple months is not acceptable.
Output VAT Schedule: A summary of all taxable supplies made during the month, categorised by tax treatment: standard-rated supplies at 7.5%; zero-rated supplies at 0%; and exempt supplies. The total value of each category and the output VAT collected on standard-rated supplies must be stated.
Input VAT Schedule: A summary of all input VAT incurred during the month on purchases and imports used in making taxable supplies, categorised by: domestic purchases from VAT-registered suppliers (supported by VAT invoices); import VAT paid to Nigerian Customs Service (supported by Form M and payment receipts); and VAT withheld by VAT withholding agents.
Net VAT Calculation: The arithmetic computation of net VAT payable — output VAT minus recoverable input VAT. Where input VAT exceeds output VAT, the excess input credit carried forward to the next month must be stated.
VAT Withholding Summary: Where the filing business is a designated VAT withholding agent, the total VAT withheld from suppliers during the month and remitted to FIRS must be disclosed separately under the Finance Act 2021 withholding regime.
Declaration: The authorised signatory's declaration that the return is true, accurate, and complete, with the signatory's name, designation, TIN, and date of filing.
Additional compliance elements for a VAT Return Form (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). VAT Return Form (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/business/corporate/vat-return-form-nigeria
"VAT Return Form (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/business/corporate/vat-return-form-nigeria.
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title = {VAT Return Form (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/business/corporate/vat-return-form-nigeria}},
note = {Free legal document template. Based on Companies and Allied Matters Act (CAMA) 2020}
}Also available for these jurisdictions:
Frequently Asked Questions
Under Section 15 of the Value Added Tax Act (Cap V1, LFN 2004) as amended by the Finance Act 2019, VAT-registered persons in Nigeria must file their monthly VAT return (Form 002) and remit the net VAT payable on or before the 21st day of the month immediately following the month to which the return relates. For example, the VAT return for January 2025 must be filed and the net VAT paid by 21 February 2025. Where the 21st falls on a weekend or public holiday, the FIRS generally accepts returns filed on the next working day without penalty, though the VAT Act does not expressly provide for this. Returns must be filed electronically through the FIRS e-Tax portal under the FIRS Electronic Filing Regulations 2015. Late filing attracts a penalty of NGN 50,000 for the first month of default and NGN 25,000 for each subsequent month under Section 27 of the VAT Act. Late payment of net VAT attracts interest at the Central Bank of Nigeria (CBN) minimum rediscount rate per annum from the due date under Section 28 of the VAT Act.
Input VAT recovery in Nigeria is subject to specific restrictions under the Value Added Tax Act (Cap V1, LFN 2004). Input VAT is recoverable only where: the goods or services were purchased and used exclusively in making taxable supplies (standard-rated or zero-rated); the input VAT is supported by a valid VAT invoice from a registered supplier showing the supplier's TIN and VAT registration number; and the input VAT has been properly remitted to FIRS by the supplier. Input VAT is not recoverable on: goods or services used in making exempt supplies (such as financial services, basic food, medical products, and educational services); private and personal expenditure not relating to the business; passenger motor vehicles (unless the business is in the motor vehicle trading, leasing, or hire business); and entertainment expenses not wholly for business purposes. Where goods or services are used for both taxable and exempt purposes, input VAT must be apportioned using the partial exemption method prescribed by FIRS in its VAT guidelines, with only the taxable-use portion recoverable.
VAT withholding in Nigeria is a mechanism introduced by the Finance Act 2021 amending Section 10 of the Value Added Tax Act (Cap V1, LFN 2004), under which designated categories of customers — primarily government agencies, public sector contractors, companies with annual turnover above NGN 500 million, and other FIRS-designated VAT withholding agents — are required to withhold 7.5% VAT on payments to their suppliers and remit the withheld VAT directly to FIRS on the supplier's behalf. When a business sells to a VAT withholding agent, the withholding agent does not pay the VAT component to the supplier — instead, it remits the VAT directly to FIRS and issues the supplier with a VAT withholding credit note. The supplier receiving such credit notes must disclose the withheld VAT in its monthly VAT return as pre-paid output VAT, offsetting the amount against its own VAT liability. The net effect is that the supplier's VAT liability is reduced by the amounts already withheld and remitted on its behalf. Failure by a withholding agent to remit withheld VAT to FIRS makes the withholding agent personally liable for the VAT under Section 10(5) of the VAT Act.
Failure to file a monthly VAT return in Nigeria attracts penalties under Section 27 of the Value Added Tax Act (Cap V1, LFN 2004). The penalty for late or non-filing is NGN 50,000 for the first month of default and NGN 25,000 for each subsequent month in which the return remains unfiled, with no statutory cap on the total penalty. In addition to the late filing penalty, failure to remit net VAT payable attracts interest at the Central Bank of Nigeria (CBN) minimum rediscount rate per annum from the due date of remittance under Section 28 of the VAT Act. Where the FIRS suspects deliberate under-reporting of output VAT or over-claiming of input VAT credits, it may raise a VAT assessment under Section 17 of the VAT Act, add a 100% penalty on the assessed tax under Section 22, and refer the matter for prosecution under Section 27 as a criminal offence. FIRS may also conduct a VAT audit of a non-filing or erratic-filing business, requiring the production of all books, records, VAT invoices, and bank statements for the defaulting period under Section 29 of the VAT Act.
A VAT refund claim in Nigeria arises where a taxable person's cumulative recoverable input VAT exceeds its output VAT — typically because the business makes significant zero-rated exports or has invested heavily in capital expenditure. Under Section 16A of the Value Added Tax Act (Cap V1, LFN 2004) as inserted by the Finance Act 2021, the FIRS is required to process and pay VAT refund claims within 30 days of receiving a valid claim. To file a VAT refund claim, the taxable person must: submit a formal refund application to FIRS through the e-Tax portal; attach all supporting documents, including VAT invoices for input claims, customs export documents for zero-rated exports, and bank statements; and provide a reconciliation of the VAT refund position in the relevant monthly returns. FIRS may conduct a refund audit before approving the claim, which can extend the processing period beyond 30 days. Where FIRS fails to pay within 30 days without justification, the taxpayer may apply to the Tax Appeal Tribunal for an order directing payment. In practice, VAT refunds from FIRS in Nigeria have historically been slow and contentious, and businesses with consistent refund positions should consider maintaining an excess input credit pool rather than filing frequent refund claims.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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