VAT Advisory Service
Navigate Tax Reform. Maximise Recoveries. Ensure Compliance.
Nigeria’s VAT regime has undergone its most significant transformation in over three decades. Effective 1 January 2026, the Nigeria Tax Act (NTA) 2025 and the Nigeria Tax Administration Act (NTAA) 2025 repealed the former VAT Act and introduced a modernised framework that fundamentally reshapes how VAT is administered, recovered, and enforced . The standard rate remains 7.5%, but the rules on input VAT recovery, e-invoicing, small business exemptions, and digital economy taxation have changed dramatically . At Qeeva Advisory, we provide VAT advisory services that help you navigate these changes, maximise legitimate VAT recovery, and ensure full compliance with the new regime.
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Why Nigerian Businesses Need VAT Advisory Services
The 2025 tax reforms have created both opportunities and compliance obligations that demand expert guidance. Here are the most critical gaps we help you address.
Expanded Input VAT Recovery – Under the former regime, input VAT recovery was severely limited—essentially a modified sales tax. Input VAT was only recoverable on goods purchased for resale or used in direct manufacture of goods . The NTA 2025 changes this fundamentally: input VAT is now claimable on services and fixed assets, provided they are used to make taxable supplies . Hotels can now claim VAT on generator repairs; manufacturers can claim input VAT on engineering consultancy services . This is a significant opportunity that many businesses are not yet capturing.
VAT as a Condition for Expense Deductibility – A major shift under section 21(p) of the NTA is that VAT must be charged and paid on all taxable supplies before the underlying expense can qualify as allowable for income tax purposes . This rule also applies to imported items. For capital assets, failure to charge VAT or pay import duty renders the asset ineligible as qualifying capital expenditure, preventing businesses from claiming capital allowances . This creates a critical link between VAT compliance and income tax efficiency.
E-Invoicing and Fiscalisation Mandate – The Acts mandate full adoption of electronic fiscalisation for recording and reporting taxable supplies . The Nigeria Revenue Service has deployed the Merchant Buyer Solution (MBS), a digital e-invoicing platform. Migration is phased, beginning with large taxpayers (₦5 billion turnover and above), with enforcement scheduled between April and June 2026 . Non-compliance penalties are severe: ₦1,000,000 for the first day of denial of access, ₦10,000 for each subsequent day, and ₦200,000 for failure to process taxable supplies through the system plus 100% of tax due and interest at the CBN Monetary Policy Rate .
Small Business Exemption Threshold Changes – The small business VAT exemption threshold has increased significantly. Under the new rules, a small business is defined as one with annual gross turnover of ₦100 million or less and total fixed assets not exceeding ₦250 million, though professional service providers are not eligible . Businesses meeting this threshold are not required to register, charge, or remit VAT . However, a critical caveat applies: taxable persons dealing with small exempt businesses are required to self-charge and remit VAT on receipts of taxable supplies from them .
Digital Economy VAT Expansion – The reforms significantly expand VAT coverage of the digital economy. About 22.3% of all VAT in Q2 2025 came from foreign sources from digital services . Businesses must now charge VAT on SaaS subscriptions, digital tools, and online services. Foreign companies with significant economic presence must charge VAT to Nigerian users. Marketplaces must charge VAT on commissions, service fees, delivery charges, ads, and promotions .
Clearer VAT Refund Framework – The former VAT framework provided no clearly defined refund mechanism, often making refunds impractical . Under the new Acts, where input VAT exceeds output VAT, the excess becomes a credit. Unused credits qualify for a refund if the taxpayer submits a request within 12 months. The NRS must process refunds within 30 days. Refunds may be set off against any type of tax liability .
Strict Compliance Deadlines and Penalties – VAT returns must be filed by the 21st day of the following month. VAT withheld at source must be remitted by the 14th day . Late filing attracts ₦100,000 for the first month and ₦50,000 for each subsequent month . Failure to remit VAT attracts 10% per annum of the unpaid amount plus interest at the CBN rate .
Professional Services Now Eligible for Input VAT Recovery – Under the former regime, professional service organisations could not recover input VAT. From 2026, VAT paid by a professional service organisation to a supplier on taxable supplies is regarded as input VAT. Where input VAT exceeds output VAT, the excess can be utilised as a credit against subsequent months or refunded within 12 months .
The Solution: Strategic VAT Advisory Services
We provide VAT advisory services that help you navigate the new regime, maximise legitimate VAT recovery, and ensure full compliance. Our approach combines deep technical expertise in the NTA 2025 and NTAA 2025, practical implementation support, and ongoing compliance monitoring.
At Qeeva Advisory, we understand that VAT is no longer a simple output-minus-input calculation. The new regime requires careful attention to input VAT eligibility, self-charging obligations, e-invoicing compliance, and capital allowance linkages. Our team brings deep expertise in Nigerian VAT, tax reform, and compliance.
We help you identify all claimable input VAT under the new rules—including VAT on services, overheads, and fixed assets that were previously non-claimable . We help you implement e-invoicing, manage refund claims, and ensure that VAT compliance supports your income tax position.
Whether you need VAT health checks, input VAT recovery optimisation, e-invoicing implementation, or complete VAT advisory, we provide the expertise and commitment to help you succeed.
Our Comprehensive VAT Advisory Services
We offer end-to-end VAT advisory services tailored to the Nigerian business environment.
VAT Health Checks and Compliance Reviews
We assess your VAT compliance and identify opportunities.
VAT Health Check – We review your VAT compliance, identifying gaps, risks, and opportunities for recovery .
Input VAT Recovery Assessment – We identify all claimable input VAT under the new rules, including VAT on services, overheads, and fixed assets .
Output VAT Review – We review your output VAT calculations, ensuring accuracy and completeness.
Compliance Gap Analysis – We identify compliance gaps against the NTA 2025 and NTAA 2025 requirements.
Penalty Risk Assessment – We assess your exposure to penalties and interest for non-compliance.
VAT Return Accuracy Review – We review VAT returns for accuracy, completeness, and compliance.
Input VAT Recovery Optimisation
We help you maximise legitimate VAT recovery.
Input VAT Identification – We identify all input VAT that is now claimable under the NTA 2025, including VAT on services and fixed assets .
Apportionment for Mixed Activities – Where costs relate to both taxable and exempt activities, we help apportion input VAT correctly .
Five-Year Claim Window – We help you claim input VAT on fixed assets within five years of the relevant tax period .
Inventory VAT Treatment – We review your inventory management and ensure proper VAT treatment of opening and closing inventory .
VAT Credit Tracking – We establish systems to track VAT credits and ensure they are utilised or refunded.
Refund Claim Preparation – We prepare VAT refund claims, ensuring they are submitted within 12 months and processed within 30 days .
VAT Registration and Deregistration
We help you meet registration obligations.
VAT Registration Assessment – We assess whether you are required to register for VAT under the new thresholds.
VAT Registration Support – We support VAT registration with the Nigeria Revenue Service.
Non-Resident VAT Advisory – We advise non-resident suppliers on VAT registration and compliance obligations .
Deregistration Support – We support deregistration where a business permanently ceases operations, ensuring the final VAT return is filed and outstanding liabilities paid .
Threshold Monitoring – We monitor turnover against the small business exemption threshold, ensuring timely registration when required.
E-Invoicing and Fiscalisation Advisory
We help you comply with the e-invoicing mandate.
E-Invoicing Readiness Assessment – We assess your readiness for the e-invoicing mandate .
Merchant Buyer Solution (MBS) Advisory – We advise on the Merchant Buyer Solution platform and migration timelines .
E-Invoicing Implementation Support – We support implementation of e-invoicing systems and processes.
Data Field Compliance – We ensure invoices include the 55 mandatory data fields required under e-invoicing .
Penalty Avoidance – We help you avoid the significant penalties for e-invoicing non-compliance .
VAT Return Preparation and Filing
We prepare and file VAT returns accurately and on time.
Monthly VAT Return Preparation – We prepare VAT returns, ensuring accuracy and completeness .
VAT Filing – We file VAT returns by the 21st day of the following month .
VAT Withheld at Source Remittance – We ensure VAT withheld at source is remitted by the 14th day of the following month .
VAT Computation – We compute VAT payable as Output VAT minus Allowable Input VAT .
Reconciliation – We reconcile VAT returns with financial records, ensuring consistency.
VAT Planning and Advisory
We help you plan for VAT efficiency.
VAT Structuring Advisory – We advise on VAT-efficient structures for transactions and contracts.
Zero-Rated vs Exempt Analysis – We help you understand the difference between zero-rated and exempt supplies, and the input VAT implications .
Self-Charge Advisory – We advise on the self-charge requirement where vendors do not charge VAT .
Capital Allowance Linkage – We ensure VAT is properly charged and paid so that capital allowances are not compromised .
Cross-Border VAT Advisory – We advise on VAT implications of cross-border transactions, including exported services and digital supplies .
Digital Economy VAT Advisory – We advise digital platforms, fintechs, and SaaS businesses on VAT obligations .
VAT Audit and Investigation Support
We support you in VAT audits and investigations.
Audit Preparation – We prepare you for NRS VAT audits, ensuring records are complete and compliant.
Audit Representation – We represent you during VAT audits and investigations.
Dispute Resolution – We support resolution of VAT disputes with the NRS.
Voluntary Disclosure – We advise on voluntary disclosure of past non-compliance.
Penalty Negotiation – We support negotiation of penalties where non-compliance has occurred.
VAT Training and Capacity Building
We help you build internal VAT capability.
VAT Training – We deliver training on the NTA 2025 VAT provisions, input VAT recovery, e-invoicing, and compliance obligations .
Finance Team Training – We train finance teams on VAT computation, return preparation, and record-keeping.
E-Invoicing Training – We train staff on e-invoicing systems and processes.
VAT Awareness Training – We deliver VAT awareness training across the organisation.
Key VAT Changes Under the NTA 2025
We help you navigate the most significant changes in the new VAT regime.
| Change | Former Regime | NTA 2025 Regime |
|---|---|---|
| VAT Rate | 7.5% | 7.5% (retained) |
| Input VAT on Services | Not claimable | Claimable if related to taxable supplies |
| Input VAT on Fixed Assets | Not claimable | Claimable if related to taxable supplies |
| Small Business Threshold | ₦25 million | ₦100 million (turnover) and ₦250 million (fixed assets) |
| VAT Refunds | No clear mechanism | Refund within 12 months, processed in 30 days |
| E-Invoicing | Not mandated | Mandatory, phased migration |
| Digital Economy | Limited coverage | Expanded to SaaS, digital tools, marketplaces |
| VAT and Capital Allowances | No linkage | VAT must be charged/paid for capital allowance claims |
VAT Rates, Thresholds, and Deadlines
| Item | Requirement |
|---|---|
| Standard VAT Rate | 7.5% |
| Small Business Exemption Threshold | ₦100 million turnover and ₦250 million fixed assets |
| VAT Registration Threshold | ₦25 million taxable supplies |
| VAT Return Filing Deadline | 21st day of following month |
| VAT Withheld at Source Remittance | 14th day of following month |
| VAT Refund Claim Window | 12 months from transaction |
| VAT Refund Processing Deadline | 30 days |
Industries We Serve
We provide VAT advisory services across multiple sectors in Nigeria.
Manufacturing – We help manufacturers claim input VAT on capital assets, raw materials, and services, and manage the VAT-capital allowance linkage .
Technology and Digital – We help SaaS businesses, fintechs, and digital platforms comply with VAT on digital services, marketplace fees, and cross-border supplies .
Banking and Financial Services – We help banks, insurance companies, and financial institutions manage VAT on financial services, which are exempt, and claim input VAT on taxable supplies.
Retail and Consumer Goods – We help retailers manage VAT on sales, inventory, and capital expenditure.
Oil and Gas – We help energy companies navigate VAT on petroleum products, exports, and capital assets .
Healthcare – We help healthcare organisations manage VAT on medical services (zero-rated), pharmaceuticals, and equipment.
Professional Services – We help law firms, consultancies, and accounting firms claim input VAT on services and fixed assets under the new rules .
Real Estate and Construction – We help developers and construction companies manage VAT on land and buildings (exempt), materials, and services.
Hospitality – We help hotels and restaurants claim input VAT on services, equipment, and overheads .
E-commerce and Marketplaces – We help marketplaces comply with VAT on commissions, service fees, delivery charges, ads, and promotions .
Non-Profit and NGOs – We help mission-driven organisations manage VAT on grants, donations, and taxable activities.
SMEs – We help SMEs understand the small business exemption and VAT obligations.
Our Engagement Process
We follow a structured, collaborative process to deliver high-impact VAT advisory.
Phase 1: Discovery and Assessment – We understand your business, VAT position, and compliance obligations. We conduct VAT health checks and identify gaps and opportunities.
Phase 2: Strategy and Planning – We develop VAT strategies that maximise recovery and ensure compliance. We identify quick wins and longer-term improvements.
Phase 3: Implementation – We implement input VAT recovery, e-invoicing, refund claims, and compliance processes.
Phase 4: Monitoring and Continuous Improvement – We monitor VAT compliance, refine processes, and provide ongoing support.
Why Choose Qeeva Advisory for VAT Advisory
Deep NTA 2025 Expertise – We have deep expertise in the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025, including the expanded input VAT recovery rules, e-invoicing mandate, and small business exemption .
Input VAT Recovery Focus – We help you identify and claim all input VAT that is now recoverable under the new rules, including VAT on services and fixed assets .
E-Invoicing Readiness – We help you prepare for the e-invoicing mandate, including the Merchant Buyer Solution platform and phased migration .
Practical and Actionable – We provide practical solutions tailored to your business size, industry, and specific challenges.
Compliance Focus – We ensure you meet filing deadlines, avoid penalties, and maintain accurate records .
VAT-Capital Allowance Linkage – We ensure VAT compliance supports your income tax position and capital allowance claims .
Nigerian Market Knowledge – We understand the Nigerian VAT landscape, including NRS requirements, e-invoicing timelines, and sector-specific issues.
End-to-End Support – We provide comprehensive services from assessment to implementation to ongoing compliance.
Training and Capability Building – We train your team and build internal VAT capability .
Long-Term Partnership – We build lasting relationships, providing ongoing support as your business evolves and regulations change.
Confidentiality and Integrity – We treat your business and tax information with the highest level of confidentiality.
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Suggested Reading
VAT Under the NTA 2025: What Digital Platforms and Fintechs Need to Know – The NTA 2025 represents a significant shift in how digital platforms and fintechs are taxed in Nigeria. This article covers expanded VAT obligations for non-resident digital service providers, SEP rules for digital services, and input VAT recovery on services and fixed assets .
VAT Computation in Nigeria 2025: Complete Guide to Input Tax, Output Tax, Opening and Closing Inventory Treatment – We understand that VAT computation can be complex, especially under the new NTA 2025 rules. The rates are the same (7.5%), but the rules on input VAT recovery, inventory treatment, and compliance have changed significantly .
VAT & Nigeria 2025 Tax Reforms: Key Changes and Implications for Businesses – This article examines Nigeria’s 2025 VAT reforms, highlighting key changes, compliance rules, and business impacts across sectors .
Registration and Deregistration of Resident and Non-Resident Persons for VAT in Nigeria Under the 2025 Tax Reforms – This article covers VAT registration and deregistration requirements for resident and non-resident persons under the NTA 2025 .
Value Added Tax (VAT) in Nigeria 2025: Complete Guide to Nature, Objectives, Administration, Taxable Persons, Goods and Services – This comprehensive guide covers VAT under the NTA 2025, including zero-rated and exempt supplies, computation, and compliance requirements .
Frequently Asked Questions (FAQ)
1. What is the VAT rate in Nigeria under the NTA 2025?
The standard VAT rate remains 7.5% under the NTA 2025 .
2. What has changed regarding input VAT recovery?
Under the former regime, input VAT was only recoverable on goods purchased for resale or used in direct manufacture. Under the NTA 2025, input VAT is now claimable on services and fixed assets, provided they relate to making taxable supplies .
3. What is the small business VAT exemption threshold?
A small business is defined as one with annual gross turnover of ₦100 million or less and total fixed assets not exceeding ₦250 million. Professional service providers are not eligible for this classification .
4. What is the e-invoicing mandate?
The NTA 2025 mandates full adoption of electronic fiscalisation for recording and reporting taxable supplies. The Nigeria Revenue Service has deployed the Merchant Buyer Solution (MBS), with phased migration beginning with large taxpayers (₦5 billion turnover and above) .
5. What are the penalties for e-invoicing non-compliance?
Penalties include ₦1,000,000 for the first day of denial of access to deploy technology, ₦10,000 for each subsequent day, and ₦200,000 for failure to process taxable supplies through the system plus 100% of tax due and interest at the CBN Monetary Policy Rate .
6. What is the VAT filing deadline?
VAT returns must be filed on or before the 21st day of the month following the transaction .
7. What is the deadline for remitting VAT withheld at source?
VAT withheld at source must be remitted by the 14th day of the following month .
8. What are the penalties for late VAT filing?
Late filing attracts ₦100,000 for the first month and ₦50,000 for each subsequent month .
9. How does VAT affect capital allowances?
Under the NTA 2025, VAT must be charged and paid on all taxable supplies before the underlying expense can qualify as allowable for income tax purposes. For capital assets, failure to charge VAT renders the asset ineligible for capital allowances .
10. What is the self-charge requirement?
Where vendors do not charge VAT, businesses must self-charge VAT on vatable expenses or assets. This is a significant change from the previous regime .
11. Can I claim input VAT on services?
Yes. Under the NTA 2025, VAT on services (rent, consultancy, IT, logistics, professional fees, legal services, repairs) is claimable if they relate to taxable supplies .
12. What is the VAT refund framework?
Where input VAT exceeds output VAT, the excess becomes a credit. Unused credits qualify for a refund if the taxpayer submits a request within 12 months. The NRS must process refunds within 30 days. Refunds may be set off against any tax liability .
13. Do non-resident businesses need to register for VAT in Nigeria?
Yes. Non-resident persons supplying taxable goods and services to Nigerian consumers are required to register for VAT. This includes digital service providers and online platforms .
14. What is the difference between zero-rated and exempt supplies?
Zero-rated supplies are taxed at 0% and input VAT is recoverable. Exempt supplies are outside the VAT system—no VAT is charged and input VAT is NOT recoverable .
15. Do you serve businesses outside Lagos?
Yes. While our head office is in Ikeja, Lagos, we serve businesses across Nigeria. Our VAT advisory services are available to clients regardless of location.
16. How do I get started?
Contact us to schedule your free consultation. We’ll discuss your VAT advisory needs, assess your situation, and provide recommendations for how we can help.
Contact Us
Navigate tax reform, maximise recoveries, and ensure compliance. Let us build a partnership that strengthens your VAT position.
Schedule Your Free Consultation to discuss your VAT advisory needs and explore how we can help.
Phone: +234 802 320 0801, +234 807 576 5799
Email: info@qeeva.com
Address: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria
Business Hours: Monday to Friday, 8:00 AM – 6:00 PM WAT
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