Value Added Tax (VAT) Registration

Value Added Tax (VAT) Registration

Registration for Value Added Tax (VAT)

Payment of tax is a civic duty. If you are providing goods and services in Nigeria, which are not exempt, then you should register for VAT. Application should be made to the Federal Inland Revenue Service (FIRS) office that is closest to official registered business address or the State Inland Revenue Service.

** Fast VAT and TIN Registration & Record Update**

A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. It is an indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food and essential drugs) or are otherwise exempt (such as exports).

It is levied at each stage in the chain of production and distribution from raw materials to the final sale based on the value (price) added at each stage. It is not a cost to the producer or the distribution chain members, and whereas its full brunt is borne by the end consumer, it avoids the double taxation (tax on tax) of a direct sales tax.

Under Nigerian law, the tax is charged at 7.5% of the value of the taxable goods and services.
Every business must register for VAT with the FIRS within 6 months of commencement of business in accordance with Section 8 of the Value Added Tax Act.

Goods on which VAT is Applicable

Locally supplied goods and services in Nigeria, except those that are specifically exempted.
VAT will be charged on non-exempted imported goods into Nigeria irrespective of whether or not:-

        the goods have to attract customs duties; and
        the person importing the goods is registered for VAT

The VAT chargeable is in addition to customs duties and other charges incur. The value of such imported goods includes all the duties and charges that may be made.
VAT is payable on services received from outside Nigeria if such services are supplied to a Nigerian customer

NOTE: 

Every seller or supplier of chargeable commodities, shall keep, maintain and preserve such records. Books and accounts in respect of all transactions by him on any chargeable commodities as the Inland  Revenue Service may prescribe and shall enter therein regular accounts of the sales tax collected day by day.
;

  Taxable Goods
1. Beer
2. Wine, Liquor and Spirits
3. Cigarettes and Tobacco
4. Jewels and Jewelleries
5. Perfumes and Cosmetics
6. Electrical and Electronic Equipment
7. Carpets and Rugs (excluding linoleum)
8. Soft drinks (including mineral water)
9. Building materials ( General)
10. Interior decoration items, including wa
Taxable Services
Sales and Services in registered
  • Hotels,

  • Motels,

  • Catering establishments,

  • Restaurants and

  • other Personal Services establishments

  • (excluding drinks)

 

 

Filing of VATReturns    

Goods or Services Exempted from VAT

Goods Exempted
(a) Basic food items;
(b) Baby products;
(c) Books and educational materials;
(d) Newspapers and magazines
(e) All Medical and pharmaceutical products;
(f) Commercial vehicles and their spare parts, and
(g) Agricultural equipment and products and veterinary medicine;
(h) Plant and machinery for use in the export processing zones.

Services Exempted
(a) Medical Services;
(b) Services rendered by Community Banks, Peoples Banks and Mortgage Institutions; and
(c) Plays and performances conducted by educational institutions as part of learning.

Exported Goods:

All exported goods are exempted from VAT. This means that no VAT is collected from the foreign trades and at the same time any input tax is refundable.

Documents required for VAT Registration

        Duly filled and officially stamped VAT form
        Application letter on company letter headed paper, with official stamp
        Certificate of Incorporation:or Business Name Registration Certificate
        Memorandum & Articles of Association
        Particulars of Persons who are First Directors of the Company,
        Utility bill
        Statement of Share Capital and Return of Allotment,
        The original copy and two photocopies of each document.
        Official Company stamp or seal for the application form

PROCESSING PERIOD

Registration for VAT normally should be within 5working days, but allow upto 7 working days for processing of your VAT registration.

The tax is collected on behalf of the Government by businesses and organizations which have registered with the Federal Inland Revenue Services (FIRS) for VAT purposes,

VAT returns and payments are normally made monthly to the FIRS on or before 21st day of the month next following that in which the supply was made.

APPLY NOW

The Application for Value Added Tax (VAT) Registration using our service, contact us.

Registration for Taxpayer Identification Number (TIN) and Value Added Tax (VAT) can be processed together.

To make an application for Value Added Tax (VAT) Registration or combine registration service.

Complete the online Application Request Form.

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