How to File Monthly VAT Returns With the NRS: Step-by-Step Guide

Step-by-step guide to filing your monthly VAT return with the NRS. Covers the Self-Service Portal process, input/output reconciliation, payment, deadlines, and common filing errors.

Every VAT-registered business in Nigeria must file a VAT return every month — twelve returns per year, each due by the 21st of the following month, each reporting the output VAT you charged, the input VAT you paid, and the net amount you owe or are owed. Miss the deadline once and it costs ₦100,000. Miss it repeatedly and the penalties compound alongside interest at the CBN rate. Yet the filing itself is not complicated — it is a structured process that, once set up correctly, takes less than an hour per month. The problem is that many businesses either do not know the process, make avoidable errors that trigger NRS queries, or leave it to the last day and scramble when the portal is slow or their records are incomplete.

This guide walks you through every step of filing your monthly VAT return on the NRS Self-Service Portal — from logging in to receiving your filing confirmation — so you can build a repeatable monthly routine that keeps your business compliant.

Who Must File Monthly VAT Returns

Every person or business registered for VAT with the NRS must file a monthly return — regardless of whether any taxable transactions occurred during the month. If you are VAT-registered and had zero sales and zero purchases in a given month, you still file a nil return showing zero output VAT, zero input VAT, and zero net VAT. Failing to file a nil return attracts the same penalty as failing to file a return with figures.

Who Is VAT-Registered

Under the NTA 2025, every person who makes taxable supplies of goods or services in Nigeria is required to register for VAT. There is no minimum turnover threshold for registration — the obligation applies from the first taxable supply. In practice, this means any business that sells taxable goods or services should be registered.

The ₦50,000,000 Filing Exemption

The NTAA 2025 provides a practical exemption: businesses with annual turnover of ₦50,000,000 or below are not required to file VAT returns. This exemption relieves small businesses of the monthly filing burden while preserving their obligation to pay VAT on their own purchases. If your turnover exceeds ₦50,000,000 — even in a single year — the exemption no longer applies and you must file monthly from that point forward.

Businesses below the threshold may register voluntarily if they wish to charge VAT on their supplies and claim input VAT on purchases. Once voluntarily registered, you must file monthly returns like any other VAT-registered person.

Before You File: Prepare Your Monthly VAT Data

Filing the return is the final step. The preparation — compiling and reconciling your output and input VAT for the month — is where the real work happens. Do this before you log into the portal.

Step 1: Compile Output VAT

Output VAT is the VAT you charged to your customers during the month. Pull this from your sales records:

• List every VAT invoice you issued during the month
• For each invoice, record the customer name, invoice number, invoice date, net amount, VAT amount, and gross total
• Separate taxable supplies from exempt supplies — only taxable supplies generate output VAT
• Total the VAT column — this is your output VAT for the month

Cross-check the total against your accounting system or sales ledger. If you use accounting software (QuickBooks, Xero, Sage, Wave), the VAT report should generate this figure automatically. If you use a spreadsheet, ensure every taxable invoice is captured and the VAT is computed correctly (net amount × 0.075).

Step 2: Compile Input VAT

Input VAT is the VAT you paid on business purchases during the month. Pull this from your purchase records:

• List every VAT invoice you received from suppliers during the month
• For each invoice, record the supplier name, invoice number, invoice date, net amount, VAT amount, and gross total
• Verify that each supplier invoice is a valid VAT invoice — it must show the supplier’s TIN, the VAT amount, and the transaction details. Invoices from unregistered suppliers or invoices without a TIN do not qualify for input VAT claims.
• Exclude purchases related to exempt supplies (if you make mixed supplies) — input VAT on purchases used for exempt activities is not claimable
• Total the qualifying VAT column — this is your input VAT for the month

Under the NTA 2025, input VAT is claimable on both goods and services — rent, consulting, logistics, IT, legal, and other business services are all eligible, provided the purchase is for business use and you hold a valid VAT invoice.

Step 3: Calculate Net VAT

Net VAT payable = Output VAT − Input VAT

If output exceeds input, you owe the difference to the NRS. If input exceeds output (common for capital-intensive businesses, new businesses with heavy startup purchases, or exporters), you have a VAT credit that carries forward to the next month.

Step 4: Reconcile With Bank Statements

Before filing, cross-reference your output and input figures against your bank statements for the month. Total sales receipts (deposits) should be consistent with your output VAT base. Total purchase payments should be consistent with your input VAT base. Significant discrepancies — sales deposits that exceed your invoiced revenue, or purchase payments that do not match your recorded expenses — should be investigated and resolved before filing. The NRS can cross-reference your VAT returns with your bank activity, and unexplained discrepancies trigger audit interest.

Filing on the NRS Self-Service Portal: Step by Step

Step 5: Log Into the Portal

Go to selfservice.nrs.gov.ng. Log in with your business credentials — your Tax Identification Number (TIN) and your portal password. If you have not previously registered on the portal, you will need to create an account using your TIN and a valid email address. First-time registration may require verification — allow a few days for this process if you are setting up for the first time.

If you have forgotten your password, use the portal’s password reset function. If your TIN is not recognised or your account is locked, contact the NRS helpdesk or visit your nearest NRS office with your CAC documents and TIN certificate to resolve the issue.

Step 6: Navigate to the VAT Return Filing Section

Once logged in, navigate to the returns filing section. Select “VAT Return” and choose the month and year for the return you are filing. Ensure you select the correct period — filing for the wrong month creates a compliance gap for the actual month and may require a correction that delays your filing record.

Step 7: Enter Output VAT Details

Enter the total value of taxable supplies made during the month (the net amount, before VAT) and the total output VAT charged. Some versions of the portal may require a breakdown by supply type (goods vs. services) or by VAT rate (standard 7.5% vs. zero-rated). Enter the figures as compiled in Step 1.

If you made zero-rated supplies (exports), enter the value of those supplies separately — the VAT rate is 0%, so the output VAT on zero-rated supplies is zero, but the value of the supplies must still be declared.

If you made exempt supplies, some portal versions require you to declare the value of exempt supplies as well — though no VAT arises on them. This allows the NRS to see your total turnover profile (taxable, zero-rated, and exempt).

Step 8: Enter Input VAT Details

Enter the total value of qualifying purchases made during the month (net amount) and the total input VAT paid. If you make mixed supplies (both taxable and exempt), enter only the input VAT that is claimable — the portion related to your taxable supplies. The irrecoverable portion (related to exempt supplies) should not be included in the input VAT claim.

Retain all supporting VAT invoices. The portal does not require you to upload individual invoices at filing — but you must be able to produce them if the NRS requests verification. Keep them organised by month, cross-referenced to your return figures.

Step 9: Review the Net VAT Calculation

The portal will calculate the net VAT payable (output minus input) or the net VAT credit (if input exceeds output). Review this figure against your own computation from Step 3. If the figures match, proceed to submission. If they differ, check your entries — a data entry error at this stage is easier to fix than an amendment after filing.

Step 10: Submit the Return

Once you are satisfied that the figures are correct, submit the return. The portal will generate a filing confirmation — a reference number, the date and time of submission, and a summary of the figures filed. Save or print this confirmation immediately. It is your proof of timely filing and your reference for any future queries.

Step 11: Pay the Net VAT

If your return shows a net VAT payable amount, payment must be made by the same deadline — the 21st of the following month. The portal typically offers payment options including Remita, direct bank payment, and other approved channels. Generate a payment reference from the portal and make the payment through the designated channel.

Keep the payment receipt. It must match the amount on your filed return. If you file a return showing ₦850,000 net VAT payable and remit ₦800,000, you have a ₦50,000 shortfall — which attracts penalty and interest from the due date until the balance is settled.

Step 12: Save Your Filing Package

After filing and payment, assemble and store the complete filing package for the month:

• The filing confirmation from the portal
• The payment receipt
• Your output VAT schedule (list of all invoices issued)
• Your input VAT schedule (list of all qualifying invoices received)
• The reconciliation between your schedules and your bank statements

Store this package in your digital tax folder under the relevant month. Retain for a minimum of six years. When the NRS conducts a VAT audit — and they will, eventually — this package is your first line of defence.

The Monthly VAT Filing Calendar

Set a recurring calendar reminder for the 15th of each month — giving yourself six days before the 21st deadline to compile data, reconcile figures, file the return, and make the payment. Do not wait until the 21st. Portal traffic increases on deadline days, payment processing may take 24–48 hours, and any error discovered on the 21st leaves no time for correction.

How to File a Nil Return

If you had no taxable transactions during the month — no sales, no purchases, or both — you still file a return. A nil return shows zero output VAT, zero input VAT, and zero net VAT. The filing process is identical to a standard return: log in, select the month, enter zeros in all fields, submit, and save the confirmation.

Nil returns happen during business slowdowns, seasonal lulls, startup phases (before revenue begins), and when a business temporarily suspends operations. The obligation to file continues as long as you are VAT-registered. If you expect to file nil returns indefinitely because your business has ceased, consider deregistering for VAT — contact the NRS to initiate the deregistration process.

Common Monthly Filing Errors

Error 1: Filing for the Wrong Month

Selecting “February” when you mean to file for January. The portal allows you to choose the period — double-check that the month and year match the data you are filing. A return filed for the wrong month leaves the correct month unfiled (attracting late filing penalties) and creates a duplicate or mismatched filing for the wrong month (requiring a correction request).

Error 2: Including VAT on Exempt Supplies in Output VAT

If you make both taxable and exempt supplies, only the taxable supplies generate output VAT. Including the value of exempt supplies in your output VAT calculation overstates your liability — you are reporting VAT that should not have been charged. If your invoicing system incorrectly charges VAT on exempt supplies, the error cascades into your return. Verify the VAT classification of every product or service before including it in the output VAT total.

Error 3: Claiming Input VAT Without Valid Invoices

Input VAT is only claimable if you hold a valid VAT invoice from a VAT-registered supplier — showing their TIN, the VAT amount, and the transaction details. Receipts without a TIN, handwritten receipts without VAT details, or invoices from unregistered suppliers do not qualify. If the NRS audits your input claims and you cannot produce valid invoices, the input VAT is disallowed — increasing your net VAT payable, plus penalties and interest on the shortfall.

Error 4: Not Apportioning Input VAT for Mixed Supplies

If you make both taxable and exempt supplies, you can only claim input VAT on purchases related to your taxable supplies. Input on shared costs (rent, utilities, general administration) must be apportioned — typically by the ratio of taxable revenue to total revenue. Claiming 100% input VAT when only 60% of your supplies are taxable overstates your input by 40% of the shared costs, and any NRS review will catch the discrepancy.

Error 5: Confusing the 21st Deadline With Other Deadlines

VAT returns and WHT returns are both due by the 21st of the following month. PAYE remittance is due by the 10th. Annual PIT returns are due by 31 March. CIT returns are due within six months of year-end. Confusing these deadlines — remitting VAT by the 10th (too early is fine but unusual) or filing VAT by the 31st (too late) — creates compliance gaps. Keep a single tax calendar with all deadlines mapped. Our VAT Calculator can help verify figures, but the deadline discipline is on you.

Error 6: Paying the Wrong Amount

Filing a return showing ₦1,200,000 net VAT payable but remitting ₦1,100,000 — whether due to a calculation error, a cash flow constraint, or a transposition mistake — creates a ₦100,000 underpayment. The NRS charges penalty and interest on the shortfall from the due date until it is settled. Always reconcile the amount paid against the amount filed. If cash flow is tight, consider whether you can defer any discretionary payments to meet the VAT obligation in full — the penalty cost of underpayment is almost always higher than the cost of short-term cash management.

Error 7: Not Filing Nil Returns

A month with no transactions still requires a return. Many businesses assume that if there is nothing to report, there is nothing to file. The NRS does not agree. An unfiled month is a non-compliant month — and the ₦100,000 penalty applies whether the return would have shown ₦10,000,000 in VAT or zero.

What Happens During a VAT Audit

The NRS conducts VAT audits — sometimes triggered by discrepancies in filed returns, sometimes by cross-referencing with other filings (CIT returns, WHT remittances, bank activity), and sometimes as routine compliance checks. Here is what auditors typically examine:

• Output completeness. Do your declared taxable supplies match your invoices, your bank deposits, and your CIT-declared revenue? If your CIT return shows ₦200,000,000 in revenue but your VAT returns show ₦150,000,000 in taxable supplies, the ₦50,000,000 gap needs an explanation — it may be exempt supplies (which is fine, if documented) or underreported output VAT (which is not).
• Input validity. Are your input VAT claims supported by valid invoices from VAT-registered suppliers? The auditor will sample your input invoices and verify the supplier TINs. Invalid inputs are disallowed, increasing your net VAT liability.
• Input apportionment. If you make mixed supplies, is the apportionment method reasonable and consistently applied? The auditor will compare your apportionment ratio against your actual revenue split and challenge any methodology that inflates the claimable portion.
• Exempt supply classification. Are supplies you treated as exempt genuinely exempt under the NTA 2025? If the auditor reclassifies a supply from exempt to taxable, all sales of that supply in the audit period generate output VAT — which was never charged or collected, and is now owed by the business.
• Timeliness and completeness. Were all 12 monthly returns filed on time? Were all payments made in full by the deadline? Late filings and underpayments generate automatic penalties and interest.

The best audit defence is a complete, consistent, well-organised filing package for every month — the output schedule, the input schedule, the bank reconciliation, the filing confirmation, and the payment receipt. Produce these promptly when the auditor requests them, and most audits conclude without adjustment.

Penalties for Late Filing and Late Payment

How Penalties Compound

Missing a single month’s VAT filing costs ₦100,000 in the first month of default. If the return remains unfiled for six months, the cumulative penalty is ₦100,000 + (5 × ₦50,000) = ₦350,000 — before any penalty on the unpaid VAT itself. Add 10% per annum on the VAT amount plus CBN rate interest (currently around 27.5%), and a ₦1,000,000 VAT liability that remains unfiled and unpaid for six months generates approximately ₦350,000 in filing penalties plus ₦187,500 in payment penalties and interest — a total penalty exposure of ₦537,500 on a ₦1,000,000 liability. More than half the tax owed, lost to penalties that would have cost nothing to avoid.

Tips for a Smooth Monthly Filing Routine

• Separate your business bank account. All business income and expenses should flow through a dedicated business account — not your personal account. This makes reconciliation straightforward and prevents the NRS from questioning personal deposits as undeclared business income.
• Issue VAT invoices at the point of sale. Do not batch invoices at month-end. Issue each invoice when the supply occurs — it simplifies your output VAT compilation and ensures no transaction is missed.
• Collect input invoices weekly. Request VAT invoices from every supplier at the time of purchase. If a supplier does not provide one, follow up immediately — you cannot claim input VAT without a valid invoice, and chasing months-old invoices is unreliable.
• Reconcile by the 10th. Set a target to have your output and input figures compiled and reconciled by the 10th of the month — 11 days before the deadline. This gives you time to resolve discrepancies, chase missing invoices, and file without deadline pressure.
• File and pay on the same day. Once the return is submitted, make the payment immediately. Do not file on the 15th and plan to pay on the 20th — payment delays create separate penalty exposure, and a plan to pay later often becomes a missed payment.
• Use accounting software if your volume warrants it. Businesses processing more than 50 invoices per month (combined sales and purchases) benefit from accounting software that generates VAT reports automatically — QuickBooks, Xero, Sage, or even a well-structured spreadsheet with VAT formulas built in. The software does not replace the filing (you still enter figures into the NRS portal), but it eliminates manual compilation errors.
• Keep a VAT filing log. A simple table tracking each month’s filing: the month, the date filed, the output VAT, the input VAT, the net VAT, the payment date, the payment amount, and the filing reference number. At year-end, this log gives you a complete compliance record at a glance — and immediately shows any gaps.

Final Thoughts

Monthly VAT filing is a rhythm, not a project. The businesses that file on time every month are the ones with a repeatable routine: compile output by the 5th, compile input by the 8th, reconcile by the 10th, file and pay by the 15th, store the package by the 16th. The businesses that struggle are the ones that treat each month’s filing as a one-off exercise, starting from scratch each time with incomplete records and deadline pressure.

The NRS Self-Service Portal at selfservice.nrs.gov.ng handles the submission. Your job is everything before and after: accurate records, complete invoices, proper reconciliation, timely payment, and organised storage. Get those right, and the portal filing is a 15-minute formality at the end of a well-managed monthly process.

Verify your VAT figures with our VAT Calculator. Check whether a specific supply is taxable, exempt, or zero-rated with the AI Tax Assistant. For complex VAT situations — mixed supply apportionment, input recovery disputes, e-invoicing compliance, or NRS audit defence — connect with a VAT specialist through the Tax Professional Directory. For the NRS filing portal, visit selfservice.nrs.gov.ng.

FAQs About Filing Monthly VAT Returns in Nigeria

When is the monthly VAT return due?

By the 21st of the month following the transaction month. January transactions are reported and paid by 21 February. February by 21 March. This deadline applies to both filing and payment — both must be completed by the 21st. Late filing attracts ₦100,000 for the first month plus ₦50,000 for each subsequent month of default.

Where do I file my VAT return?

On the NRS Self-Service Portal at selfservice.nrs.gov.ng. Log in with your Tax ID and portal password, navigate to the VAT return section, select the correct month and year, enter your output and input figures, submit, and make the payment through the portal’s designated payment channels.

Do I need to file if I had no transactions this month?

Yes. A nil return (showing zero output VAT, zero input VAT, and zero net VAT) must be filed for every month that you are VAT-registered — even if no taxable transactions occurred. An unfiled month attracts the same ₦100,000 penalty as a missed return with figures. If you expect to file nil returns indefinitely, consider applying for VAT deregistration.

Can I claim input VAT on services?

Yes. The NTA 2025 expanded input VAT to cover both goods and services. VAT paid on rent, consulting, logistics, IT, legal fees, accounting, and other business services is claimable — provided the purchase is for business use and you hold a valid VAT invoice from a VAT-registered supplier showing their TIN and the VAT amount.

What if my input VAT exceeds my output VAT?

You have a net VAT credit for the month. The excess input VAT carries forward and is offset against output VAT in subsequent months. For exporters with persistently higher input than output (because their sales are zero-rated), the NTA 2025 provides for cash refunds from the NRS — though in practice, securing refunds requires persistent engagement and complete documentation.

What records do I need to keep for VAT filing?

For each month: all VAT invoices issued (output), all qualifying VAT invoices received (input), your output and input schedules, the bank statement reconciliation, the filing confirmation from the portal, and the payment receipt. Retain for a minimum of six years. Organised monthly filing packages are your primary defence during an NRS VAT audit.

What is the penalty for filing late?

₦100,000 for the first month of default and ₦50,000 for each subsequent month under NTAA Section 101. Late payment of the VAT liability attracts the principal amount plus 10% per annum plus interest at the CBN Monetary Policy Rate under Section 107. On a ₦1,000,000 VAT liability left unfiled and unpaid for six months, total penalties and interest can exceed ₦500,000 — more than half the original liability.