VAT returns are a monthly obligation. Every single month, if your business is VAT-registered (turnover above ₦25M in any 12-month period), you must file a return with the Nigeria Revenue Service by the 21st of the following month. Miss it, and penalties start accumulating immediately.
This guide shows you exactly how to file your monthly VAT return on Taxly — what to prepare, what each field means, what documents to upload, and how to stay on top of it month after month without losing your mind.
Who needs to file VAT returns? Any business registered for VAT in Nigeria — generally businesses with annual turnover exceeding ₦25M in any consecutive 12-month period. The return is due monthly, by the 21st of the month following the reporting period.
What to Prepare Before You Start
VAT returns are simpler than PIT or CIT filings, but you need specific documents ready for each month. Here's your monthly prep list:
Information You'll Need
- VAT TIN / Tax ID — your VAT registration number
- Total taxable sales for the month — the value of all goods/services you sold that are subject to VAT
- Exempt sales — value of any VAT-exempt goods/services sold (e.g. basic food items, medical services)
Documents to Upload (PDFs)
- Bank statement for the month — covering the exact period you're filing for (required)
- All invoices issued where inflow was received — every invoice you sent to customers where they actually paid you during the month (required)
- All invoices received where payment was made — every invoice you received from suppliers where you actually paid them during the month (required)
- Contract documents — for expected inflows or outflows from contracts (optional)
Tip: Get into the habit of saving your invoices and bank statements in a dedicated folder each month. When the 15th rolls around, you should already have everything ready. Don't wait until the 20th to start scrambling for documents.
Step 1: Select VAT from the Filing Page
Log into your Taxly dashboard. Click "File Taxes" in the sidebar and select the "VAT" card from the tax type options.
Plan requirement: VAT filing requires the Business plan or higher. If you're on the Personal plan, you'll need to upgrade before you can access the VAT filing form.
The VAT form is more compact than PIT or CIT — it has three sections: Business & VAT Details, Upload Documents, and Declaration & Submission. You can complete it in under 10 minutes if your documents are ready.
Step 2: Business & VAT Details (Section 1)
This section captures your business identity and the VAT figures for the filing period. Here's what you'll see, as at the time of writing:
| Field | Required? | Notes |
|---|---|---|
| Filing month | Yes | Dropdown: January through December — the month you're reporting on |
| Filing year | Yes | The year of the reporting period |
| Business name | Yes | Your registered business name |
| VAT TIN / Tax ID | Yes | Your VAT registration number |
| Total taxable sales (₦) | No | Total value of sales subject to VAT (excludes exempt sales) |
| Exempt sales (₦) | No | Sales of VAT-exempt goods/services — enter 0 if none |
| Total output VAT (₦) | No | 7.5% × total taxable sales — the VAT you charged customers |
| Total input VAT (₦) | No | VAT you paid on business purchases (claimable against output VAT) |
| Net VAT payable (₦) | No | Auto-calculated: Output VAT minus Input VAT — what you owe NRS |
Understanding the VAT Calculation
The VAT math is straightforward:
- Output VAT = 7.5% × your total taxable sales (this is the VAT you charged your customers)
- Input VAT = the VAT you paid on purchases from your suppliers (receipts/invoices prove this)
- Net VAT payable = Output VAT − Input VAT (this is what you owe NRS)
VAT rate confirmed: The NTA 2025 VAT rate is 7.5%. There are no scheduled increases under current law. This rate applies uniformly to all taxable supplies.
All Computed Fields Are Optional
Here's what makes Taxly different: you don't have to compute anything yourself. The form hints state clearly — "We can compute from your invoices." If you upload your invoices (issued and received) plus your bank statement, Taxly's accountants can calculate your output VAT, input VAT, and net VAT payable on your behalf.
However, if you already know your numbers (because your accounting software tracks them), entering them speeds up the review process.
Example: Say your business sold ₦5,000,000 worth of taxable goods in April. You purchased ₦2,000,000 in supplies (with VAT-inclusive invoices).
Output VAT = 7.5% × ₦5,000,000 = ₦375,000
Input VAT = 7.5% × ₦2,000,000 = ₦150,000
Net VAT payable = ₦375,000 − ₦150,000 = ₦225,000
This ₦225,000 is due to NRS by the 21st of the following month (May 21).
What Counts as Exempt Sales?
Certain goods and services are exempt from VAT under NTA 2025. If your business sells any of these, enter their value in the "Exempt sales" field:
- Basic food items (unprocessed agricultural produce)
- Medical and pharmaceutical products
- Educational materials (books, educational equipment)
- Baby products
- Exported goods and services
If all your sales are taxable, enter 0 in the exempt sales field or leave it blank.
Step 3: Upload Documents (Section 2)
VAT document uploads are focused on proving what money came in and went out during the month. All files should be PDF format, max 10MB each.
Required Documents
- Bank statement for the period under review — must cover the exact month you're filing for. This shows actual cash movements and helps verify your declared sales and purchases against real bank transactions.
- Invoices issued for which inflow was received — every sales invoice where the customer actually paid you during the month. Not invoices you sent that are still outstanding — only those where payment was received. This proves your output VAT liability.
- Invoices received for which payment was made — every purchase invoice from suppliers where you actually made payment during the month. These prove your input VAT claim. Only invoices you paid — not outstanding payables.
Key distinction: "Invoices issued for which inflow was received" means invoices where the money actually came in. "Invoices received for which payment was made" means invoices where the money actually went out. It's about actual cash flow during the period, not invoiced amounts.
Optional Documents
- Contract documents (expected inflow/outflow) — if you have contracts that will generate future VAT obligations, uploading them gives Taxly's accountants context for upcoming months. This is optional and forward-looking.
Tip: If you have many invoices, combine them into a single PDF before uploading. Most PDF tools let you merge multiple files. One consolidated "Sales Invoices - April 2026.pdf" is easier than trying to upload 50 separate files.
Step 4: Declaration & Submit (Section 3)
The final section contains your declaration and submit button. Tick the checkbox to confirm:
- The VAT information provided is true and correct
- You authorise Taxly to file this VAT return with NRS
Click "Submit VAT Return" and you're done for the month.
What Happens After Submission
The processing flow follows the same pattern as other Taxly filings:
- "Submitted" — your VAT return enters the review queue
- "Processing" — accountants verify your invoices against bank statement, compute VAT if you didn't provide figures
- "Filed" — your return has been submitted to NRS
- "Completed" — NRS has accepted the return
- Document ID delivered — proof of filing sent via email and shown on your dashboard
Track everything from "My Filings" on your dashboard. Each month's return shows as a separate filing with its own status.
The Monthly Rhythm: Staying on Top of VAT
Unlike PIT (annual) or CIT (annual), VAT is a monthly obligation. Every single month. Twelve times a year. The 21st deadline is non-negotiable — late filing triggers penalties immediately.
Here's how to build a sustainable monthly VAT routine:
Week 1 of the month (1st – 7th)
Close out the previous month's books. Ensure all invoices from the prior month are recorded and payments reconciled.
Week 2 (8th – 14th)
Gather documents for the filing: download bank statement for the previous month, compile invoices issued (paid) and invoices received (paid). Save everything as PDFs.
Week 3 (15th – 20th)
File on Taxly. Log in, fill out the VAT form, upload documents, and submit. Aim to submit by the 15th to give Taxly's accountants time to review and process before the 21st deadline.
Don't wait until the 20th. If you submit on the 20th and the accountants need clarification on something, you're cutting it dangerously close to the deadline. Give yourself buffer time by filing early in the month.
Monthly Calendar Reminder
Set a recurring calendar reminder for the 10th of every month: "Prepare VAT documents for last month." And another for the 15th: "File VAT return on Taxly." This simple two-reminder system keeps you compliant year-round.
Real scenario: It's May 10. You need to file your April VAT return (due May 21). On May 10, you download your April bank statement and collect all April invoices. On May 12, you log into Taxly, fill in the form, upload documents, and submit. Done. Six days before the deadline. No stress.
What Happens If You File Late?
Missing the 21st deadline comes with consequences:
- ₦50,000 penalty for the first month of default
- ₦25,000 for each subsequent month the return remains unfiled
- Interest on unpaid VAT at the prevailing Central Bank rate
- Potential compliance issues when applying for Tax Clearance Certificate or government contracts
The penalties are per month, per return. If you miss three months, that's three separate penalties plus interest. It adds up fast. Filing on time — even a nil return if you had no taxable sales — avoids all of this.
Nil Returns: When You Had No Sales
Had no taxable sales in a given month? You still need to file. Submit a nil return — set total taxable sales to 0, upload your bank statement showing no relevant activity, and submit. The obligation is to file, regardless of whether VAT is owed.
Common Mistakes to Avoid
- Wrong filing period — make sure the filing month and year match the period your documents cover. Filing April's data under May's period creates a mess that's hard to untangle.
- Including invoices not yet paid — only include invoices where money actually changed hands during the month. An invoice issued in April but paid in May belongs in May's return, not April's.
- Forgetting input VAT — many businesses focus only on what they collected (output) and forget to claim what they paid (input). Your input VAT reduces what you owe. Don't leave money on the table.
- Using full-year bank statements — upload only the bank statement for the specific month you're filing. A full-year statement makes the accountant's job harder and slows down processing.
- Filing quarterly instead of monthly — VAT is monthly. There's no quarterly option. Even if your accountant previously filed quarterly under the old system, the current requirement is monthly by the 21st.
Frequently Asked Questions
Can I file multiple months at once if I'm behind?
Each month requires a separate filing. If you're behind on three months, you'll need to submit three separate VAT returns — one for each month. Each will have its own documents, its own figures, and its own Document ID. Start with the oldest month first.
What if I don't know my exact taxable sales?
Upload your invoices and bank statement. Taxly's accountants can compute your taxable sales from the documents. The form fields for sales figures are optional — they help speed up processing but aren't strictly required.
Is my business required to register for VAT?
If your annual turnover exceeds ₦25M in any consecutive 12-month period, you're required to register for VAT and file monthly returns. Below that threshold, VAT registration is voluntary but not mandatory.
What about businesses that only make exempt supplies?
If all your supplies are VAT-exempt (e.g., you sell only unprocessed food items), you may not need to file VAT returns — but check with a tax adviser. If you're VAT-registered, you must file regardless of whether your supplies are taxable or exempt.
Does the 21st deadline include weekends?
If the 21st falls on a weekend or public holiday, the deadline typically extends to the next business day. However, don't rely on this — file before the 21st regardless of what day it falls on.
Stay on top of your monthly VAT returns
Set it and forget it. Taxly handles the computation and NRS submission — you just upload your monthly invoices and bank statement.
File VAT on Taxly →