The Nigeria Revenue Service published three guidelines on 29 June 2026 implementing the Nigeria Tax Act 2025: appointed agents must remit withheld VAT to the NRS by the 14th of the following month; chargeable gains are taxed at standard corporate rates (0% or 30%) instead of 10%, effective 1 January 2026; VAT refunds must be claimed within 12 months, non-VAT within six years, with false claims penalised at 100% and 50% respectively.
The Nigeria Revenue Service (NRS) has published three new guidelines dated 29 June 2026, incorporating changes introduced by the Nigeria Tax Act (NTA) 2025 and the Nigeria Tax Administration Act (NTAA) 2025, both of which took effect on 1 January 2026.
Guidelines on the withholding of value added tax
The Nigeria Revenue Service (NRS) Information Circular 2026/18, in alignment with the Nigeria Tax Act (NTA) 2025, outlines rigorous compliance procedures and obligations for appointed agents, government Ministries, Departments, and Agencies (MDAs), and non-resident suppliers regarding the deduction, reporting, and remittance of Value Added Tax (VAT) on taxable supplies.
Under Sections 150 and 154 of the Act, MDAs and appointed agents must withhold the VAT stated on their suppliers’ invoices, compile detailed schedules containing the suppliers’ Tax ID and transaction data, and remit the withheld tax directly to the NRS instead of paying it to the supplier. When dealing with non-resident suppliers, an appointed non-resident supplier has the primary responsibility to collect and remit the VAT. However, if an appointed non-resident fails to collect the tax, or if the supply is made by an unappointed non-resident, the Nigerian recipient (including appointed agents) must step in and withhold the VAT.
Under these NTA 2025 guidelines, appointed agents are required to file separate VAT returns and remit the withheld taxes to the NRS on or before the 14th day of the month immediately following the transaction. Crucially, this remittance must be made in the transaction’s original currency and kept completely distinct from the agent’s standard VAT collections on their own taxable supplies. To ensure auditing accountability, any business obligated to withhold VAT must maintain a dedicated ledger account named the “VAT Withheld Account,” separate from its regular VAT accounts. Taxpayers must record all VAT withheld from suppliers to the credit of this account, record all remittances to the NRS as debits, and keep the complete ledger statement available for periodic NRS tax audits.
Clarification on ascertainment of chargeable gains
Under the Nigeria Tax Act (NTA) 2025, the Capital Gains Tax Act is repealed. From January 1, 2026, chargeable gains are integrated into assessable profits and taxed at standard corporate rates (0% or 30%) or individual tax bands instead of the old standalone 10% rate.
Valuations utilise arm’s-length open-market pricing, while partial disposals apportion costs using the \(A/(A+B)\) formula. Key exemptions apply to a once-in-a-lifetime private residence disposal and corporate share sales under NGN 150 million. Transitional rules dictate that post-2025 disposals fall entirely under the NTA, whereas instalment payments extending past 2025 remain under CGTA rules if the total period is under 18 months, but adopt NTA rules if it exceeds 18 months.
The Nigeria Revenue Service (NRS) administers tax refunds under separate rules for VAT and non-VAT claims. VAT refund claims must be filed within 12 months of the transaction and are settled or offset within 30 days, while non-VAT claims must be filed within six years after the relevant assessment year and are processed within 90 days of the tax authority’s decision. False claims attract penalties of 100% for VAT and 50% for non-VAT refunds, plus interest at the prevailing Central Bank of Nigeria rate. Taxpayers must also be current with all tax filings, and the NRS will offset any outstanding tax liabilities against the refundable amount before paying the balance.
