Nigerian VAT registration

Businesses supplying taxable supplies must VAT register. This is a requirement for services, as well as goods, since there is no reverse charge provision. This requirement covers incorporated companies and individuals providing supplies on a habitual basis. There is no provision for VAT group registrations.

A VAT registration with FIRS is carried out by completing Form 001. The applicant must provide an incorporation number or personal ID if not incorporated. Upon being granted a VAT registration, a unique 10-digit VAT identification number is provided to the tax payer to use on invoices or when submitting VAT returns.

Non-resident traders must also register with the FIRS if providing taxable supplies – note this includes services since there is no reverse charge. They are not required to appoint a fiscal representative or other type of VAT agent.

The VAT registration threshold is nil; businesses must therefore register before providing their first taxable sale of goods or services. Failing to register will incur a fine of NGN 10,000 for the first month; and then NGN 5000 for any subsequent months.

Businesses without a permanent establishment in Nigeria are also required to VAT register if they are providing any taxable supplies. They must provide a representative contact for this, which is typically a customer.