VAT Returns¶
Last reviewed: 2026-03-31 · Nnamdi
Status: Complete
Route: /tax/vat-returns
1. What is it?¶
VAT Returns is the module where businesses generate, manage, and file their monthly Value Added Tax returns. The module handles the full VAT compliance cycle: calculating Output VAT (on sales) and Input VAT (on purchases), producing NRS TaxPro-Max compatible return schedules, and linking directly to Filing Services for managed submission. Returns support both Cash Basis and Accrual Basis accounting, and generate detailed schedules including customer/supplier TINs, exempt and zero-rated goods summaries, and import schedules — all matching the current NRS TaxPro-Max format.
2. How does it work in Finora?¶
2.1 The VAT Returns page (/tax/vat-returns)¶
Header: - Heading: "VAT Returns" - Subtitle: "Manage your monthly VAT returns and filings" - Year selector — select the fiscal year to view returns for - Generate Return button — opens the period and options panel - File VAT/WHT Combo button — shortcuts to Filing Services for managed filing
KPI summary strip (test business):
| Metric | Value |
|---|---|
| Total Returns | 0 |
| Pending | 0 |
| Total Output VAT | ₦0.00 |
| Total Input VAT | ₦0.00 |
Empty state: "No VAT returns yet — Generate your first VAT return to track your tax obligations"
2.2 Generate VAT Return panel¶
Clicking Generate Return opens a right-hand panel with two sections:
Period selector¶
A grid of month buttons showing each period and its NRS due date:
| Period | Due Date |
|---|---|
| February 2026 | 21st March 2026 |
| January 2026 | 21st February 2026 |
| December 2025 | 21st January 2026 |
| November 2025 | 21st December 2025 |
| October 2025 | 21st November 2025 |
| September 2025 | 21st October 2025 |
| August 2025 | 21st September 2025 |
| July 2025 | 21st August 2025 |
| June 2025 | 21st July 2025 |
| May 2025 | 21st June 2025 |
| April 2025 | 21st May 2025 |
| March 2025 | 21st April 2025 |
Only concluded months are shown — the current month cannot be filed until it closes. The due date is always the 21st of the month following the filing period (per NTAA 2025).
Accounting Basis toggle¶
| Option | Description |
|---|---|
| Cash Basis (Recommended) | VAT calculated from actual customer payments received — uses VAT from the VAT Payable account (only paid invoices) |
| Accrual Basis | VAT calculated from all issued invoices regardless of payment status |
Cash Basis is the recommended default for most Nigerian SMEs. It ensures the business only remits VAT on income actually received — avoiding cash flow strain from remitting VAT on unpaid invoices.
NRS TaxPro-Max compatibility¶
The panel confirms the generated return will include detailed schedules matching the NRS TaxPro-Max requirements (formerly FIRS TaxPro-Max), specifically:
- Sales/Output VAT Schedule — with customer TINs
- Purchases/Input VAT Schedule — with supplier TINs
- Exempt and Zero-Rated goods summaries
- Import schedule (if applicable)
Confirmation display: "Selected: [Month Year]" — confirms the chosen period before generating.
Action buttons: - Cancel — closes the panel without generating - Generate Return — creates the return for the selected period and basis
2.3 VAT return record (after generation)¶
Once generated, a return appears in the returns table with:
| Field | Description |
|---|---|
| Period | Month and year of the return |
| Accounting Basis | Cash or Accrual |
| Output VAT | Total VAT collected on sales for the period |
| Input VAT | Total VAT paid on purchases for the period |
| Net VAT | Output VAT minus Input VAT = amount payable to NRS |
| Status | Pending / Filed / Overdue |
| Due Date | 21st of the following month |
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Monthly filing | VAT is filed monthly — one return per calendar month |
| Cash Basis recommended | For most SMEs, cash basis avoids remitting VAT on outstanding (unpaid) invoices |
| TaxPro-Max compatible | Generated returns match current NRS TaxPro-Max format for direct upload or managed filing |
| TINs required for schedules | Customer and supplier TINs must be on file for the Output and Input VAT schedules to be complete |
| Net VAT = payable amount | If Input VAT > Output VAT, the difference is a VAT credit (claimable from NRS) |
| Due date: 21st of following month | Late filing attracts a 10% penalty + CBN MPR interest under NTAA 2025 |
| Small businesses exempt | Businesses with annual turnover < ₦100M (NTAA 2025 §147) are not required to register for VAT — this module is for VAT-registered businesses only |
| "File VAT/WHT Combo" shortcut | Clicking this button routes to Filing Services — Finora's team handles submission |
4. Nigerian regulatory context¶
VAT framework (NTAA 2025)¶
- Standard rate: 7.5% on taxable supplies (unchanged under NTA 2025)
- Registration threshold: ₦100M annual turnover (NTAA 2025 §147); businesses below this threshold are not required to register
- Monthly filing: Returns due by the 21st of the month following the taxable period
- Late filing penalty: 10% of the net VAT payable + interest at the CBN monetary policy rate
Output VAT¶
VAT charged on goods and services sold by the business. Collected from customers on top of the invoice amount and held in the VAT Payable account until remitted to NRS.
Input VAT¶
VAT paid by the business on its own purchases and expenses. Claimed as a deduction against Output VAT to arrive at the net amount payable to NRS.
Cash Basis vs Accrual Basis¶
- Cash Basis: Output VAT is only recognised when the customer pays. Aligns VAT liability with actual cash received — reduces the risk of remitting tax on bad debts. Finora's VAT Payable account captures this correctly (only paid invoices post to VAT Payable).
- Accrual Basis: Output VAT is recognised at the time of invoicing, regardless of payment. Required if the business is large enough that NRS demands accrual accounting.
TaxPro-Max (NRS filing portal)¶
TaxPro-Max is the NRS's online tax self-service portal used for filing VAT, WHT, CIT, and other returns. Finora generates returns in TaxPro-Max format so businesses can: 1. File directly on TaxPro-Max themselves, or 2. Use Finora's Filing Services for managed submission
The TaxPro-Max format requires customer and supplier TIN numbers on the VAT schedules — without TINs, the schedule is incomplete.
Zero-rated and exempt supplies¶
- Zero-rated: Taxable at 0% (e.g., basic food items, exported goods) — Input VAT on costs is still recoverable
- Exempt: Not subject to VAT (e.g., educational services, medical services) — Input VAT on costs is not recoverable
- Both categories are reported separately in the VAT return schedules
5. Common customer questions¶
Q: "My business is below ₦100M turnover. Do I need to file VAT returns?"
No — businesses below ₦100M annual turnover are not required to register for VAT under NTAA 2025 §147. The Tax Compliance Dashboard will show VAT as "Not Required." If you are already VAT-registered (from before the threshold was raised), check with your accountant whether de-registration makes sense. Escalate to Tier 2 for specific guidance.
Q: "What is the difference between Cash Basis and Accrual Basis for VAT?"
Cash Basis means you only pay VAT to NRS once your customer has actually paid you. Accrual Basis means you owe VAT as soon as you issue an invoice, even if the customer hasn't paid. Cash Basis is recommended for most SMEs to avoid cash flow strain — you're not paying tax on money you haven't received.
Q: "What does 'TaxPro-Max compatible' mean?"
TaxPro-Max is the NRS online portal for filing tax returns. Finora generates your VAT return in the exact format TaxPro-Max expects — with all schedules, TINs, and breakdowns — so you can upload it directly or let Finora's team file it for you.
Q: "I generated a return but the Output VAT is ₦0. Is that correct?"
It depends. If your business had no taxable sales in the period, ₦0 is correct — you still need to file a nil return. If you did have taxable sales, check that your invoices are correctly linked to VAT-applicable items and that payments are recorded (for Cash Basis). Escalate to Tier 2 if the figure looks wrong.
Q: "How do I file the return after generating it?"
Two options: (1) Use the "File VAT/WHT Combo" button to engage Finora's managed filing service (a fee applies), or (2) download the return and upload it yourself on the NRS TaxPro-Max portal.
6. Known edge cases¶
Small company with VAT Returns module visible¶
The VAT Returns module is accessible to all businesses, including those below the ₦100M VAT threshold. Businesses that are VAT-exempt will show ₦0 across all KPIs and no returns. The Tax Compliance Dashboard is the authoritative view for whether VAT registration is required.
Missing TINs = incomplete TaxPro-Max schedule¶
If customers or suppliers don't have TIN numbers recorded in Finora, the Output/Input VAT schedules will be incomplete. TaxPro-Max may reject uploads with missing TINs. Agents should direct customers to ensure TINs are populated on customer and supplier records before generating returns.
Cash Basis and unpaid invoices¶
A business using Cash Basis may notice that Output VAT is lower than expected — this is correct. Invoices that haven't been paid do not contribute to Output VAT on a cash basis. The VAT will appear in a future month's return when payment is received.
Generating a return for a month with no transactions¶
The system will generate a nil return (₦0 Output VAT, ₦0 Input VAT, ₦0 Net VAT). A nil return is a valid filing — it confirms to NRS that no taxable activity occurred. Businesses must still file nil returns for every month they are VAT-registered.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - "Generate Return" fails with an error - A generated return shows clearly incorrect amounts that don't match known invoices/payments
Escalate to Tier 2 (Support Lead) if: - Customer is VAT-registered but below ₦100M threshold and wants to de-register - Customer has missing TINs and needs help completing their schedules - Customer questions Cash vs Accrual Basis and their specific situation - Customer needs to amend a previously filed VAT return
8. Last reviewed¶
2026-03-31 — Nnamdi. Verified against production. VAT Returns page for COA Test School Academy: Total Returns 0 / Pending 0 / Total Output VAT ₦0 / Total Input VAT ₦0. Empty state confirmed. Generate Return panel captured: 12-month period grid (March 2025 – February 2026), due date = 21st of following month for each period. Accounting Basis: Cash Basis (Recommended) / Accrual Basis; Cash Basis note "uses VAT from the VAT Payable account (only paid invoices)". NRS TaxPro-Max compatibility confirmed with 4 schedule types. "Selected: February 2026" confirmation shown. File VAT/WHT Combo button confirmed (routes to Filing Services). Year selector confirmed.