The Finance Acts of 2019, 2020, 2021, and 2023 have introduced key changes to the Value Added Tax (VAT) Act in Nigeria.

Notably, the VAT rate increased from 5% to 7.5% (Finance Act 2019), while subsequent amendments have expanded the scope of VAT to include digital services, non-resident suppliers, and clarified exemptions and place of supply rules.

In line with these changes, the Federal Inland Revenue Service (FIRS) issued circulars directing all taxable persons, including those in Free Zones (to the extent they transact within the customs territory), to register, charge VAT where applicable, file monthly VAT returns, and remit collections by the 21st of the following month.

Taxpayers are advised to review their VAT obligations under the amended law to ensure full compliance and avoid penalties.