Do You Need to Register for VAT?
Check if your business revenue crosses the \₦25M VAT threshold — and what to do about it.
Your Revenue Details
Include all business income
Your projected annual revenue
₦74,000,000
VAT threshold: ₦25,000,000
Estimated VAT Obligation
₦5,550,000
₦74,000,000 × 7.5%
🚨 REQUIRED ACTIONS:
- 1.Register with FIRS immediately
- 2.Start charging 7.5% VAT on all taxable goods/services
- 3.Set up monthly VAT return filing
- 4.Track VAT collected and VAT paid on expenses
- 5.File returns by the 21st of each month
⚠️ Failure to register can result in penalties of up to \₦50,000 for the first month and \₦25,000 for each subsequent month.
Understanding VAT in Nigeria
WHAT IS VAT?
Value Added Tax (VAT) is a 7.5% consumption tax charged on most goods and services in Nigeria. Businesses collect it from customers and remit it to FIRS.
WHO MUST REGISTER?
Any business with annual turnover exceeding ₦25,000,000 must register for VAT. This applies to companies, partnerships, and sole proprietors.
WHAT'S EXEMPT?
Some items are VAT-exempt: basic food items, medical and pharmaceutical products, educational materials, baby products, agricultural equipment, and exported goods (zero-rated).
WHAT IF I DON'T REGISTER?
Penalties include ₦50,000 for the first month of default, ₦25,000 for each subsequent month, plus interest on unpaid VAT and potential legal action by FIRS.
How to Register for VAT
Gather Documents
Certificate of incorporation, Memorandum of Association, Tax Identification Number (TIN), board resolution, and utility bill.
Register Online
Visit the FIRS website (firs.gov.ng) and complete the VAT registration form. You can also visit your local FIRS office.
Receive Your VAT Number
FIRS will issue your VAT registration number within 2–4 weeks. Use this on all invoices.
Start Charging VAT
Add 7.5% VAT to your invoices. Keep records of all VAT collected and VAT paid on business expenses.
File Monthly Returns
Submit VAT returns by the 21st of each month. Pay any VAT owed (collected minus paid).
Let Erin Track Your VAT Threshold
Stop guessing. Erin monitors your income and alerts you before you cross the VAT threshold — so you're never caught off guard.