The obligation at a glance
| Obligation | Frequency | Due date |
|---|---|---|
| VAT return & payment | Monthly | On or before the 21st of the following month |
Penalties — why the date matters
- ₦100,000 penalty for the first month of default (late registration or late filing).
- ₦50,000 for each subsequent month the default continues.
- Interest on any unpaid VAT at the prevailing rate.
- Additional penalties apply for false declarations or for failing to remit VAT that was charged.
What happens if you're late
The penalty compounds monthly — ₦100,000 for the first month and ₦50,000 for every month the return or payment stays outstanding — so a return that slips several months becomes materially expensive, on top of interest accruing on the unpaid VAT. Because VAT you charged customers is money held on behalf of the state, non-remittance is treated seriously. The practical takeaway: file the monthly return by the 21st even in a nil month, and pay what is due at the same time.
Work out the VAT and issue a compliant invoice
Use the Nigeria VAT calculator to work out 7.5% VAT on any amount, the free invoice generator to issue a compliant VAT invoice, and the payslip generator for staff pay records. See also the Nigeria invoice requirements.