Nigeria: Updated features for VAT filing and payment on online platform

Filing and payment on the TaxPro-Max (TPM) online platform

Filing and payment on the TaxPro-Max (TPM) online platform

The Federal Internal Revenue Service (FIRS) updated the features for value added tax (VAT) filing and payment on the TaxPro-Max (TPM) online platform.

Significant changes include:

  • Introduction of an input VAT credit mechanism, which requires suppliers to remit VAT collected from customers to the FIRS using a new sales schedule format for the customers to claim the allowable input VAT on such purchases. 
    • The new monthly sales schedule includes additional information, which should be uploaded to the TPM, such as customers tax identification numbers (TINs), description of items sold and status of the items for VAT purpose (i.e., VATable, zero-rated or exempt). 
    • If the supplier does not know a customer’s TIN and fails to enter zero in the relevant cell, the customer will not be able to claim the input VAT on that purchase.
  • Modification of the sales adjustment process, which allows a taxpayer to modify the sales figures reported in the prior month’s returns in the current month when there are changes to the information filed earlier. 
    • Taxpayers are now required to provide the item identification number of the sales for that month(s) in order to make such adjustments. 
    • When taxpayers make sales adjustments for the previous month, the platform will reverse the VAT credit granted in that month.

KPMG observation

The VAT Act does not require proper submission into TPM in order for a taxpayer to claim its allowable input VAT. Thus, to the extent that a customer has paid input VAT to the supplier, it should claim such allowable input VAT in that month, regardless of whether related submissions to TPM have been made. 

The TPM input VAT credit mechanism also does not consider the allowable input VAT paid to Nigeria Customs Service (NCS) on imported goods. 

Read an April 2023 report [PDF 291 KB] prepared by the KPMG member firm in Nigeria

 

 

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