AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A monthly VAT return in Nigeria sets the 7.5% VAT you charged on sales (output VAT) against the VAT you paid on purchases used for those sales (input VAT); the difference is due on or before the 21st day of the following month, as reported by BusinessDay in February 2026. On a Pryme Business Account, the Finance agent compiles the sales list, the input VAT schedule and a draft summary from the month's records; a person in the business checks it, approves it and files it with the tax authority.
What a monthly VAT return actually contains
A VAT return is a short form with a lot of work behind it. The figures on the form are totals, but each total has to be traceable back to invoices, receipts and payments. Under the Nigeria Tax Act 2025, which took effect on 1 January 2026, the standard VAT rate stays at 7.5% (Forvis Mazars, March 2026). BusinessDay's February 2026 explainer sets out the core of the return:
- Output VAT: the VAT you charged customers on taxable sales in the month.
- Input VAT: the VAT you paid on purchases used to make those taxable sales, which can be claimed against output VAT.
- Net VAT: output VAT minus input VAT. If input VAT is higher, the excess is recorded as a credit that may be carried forward.
- Due date: filing and payment on or before the 21st day of the month after the month of the transactions, citing section 22(1) of the Nigeria Tax Administration Act.
The same article reports that businesses with annual turnover below ₦100 million are treated as small businesses and do not charge or file VAT, while those above it must register and file monthly. Thresholds and portal arrangements have been changing as the 2025 tax laws bed in, so confirm your own position with the Nigeria Revenue Service (NRS, formerly FIRS) or a tax adviser before relying on it. This article is information, not tax advice.
The three working papers behind the return
Most of the effort in a VAT return goes into three lists. Getting them right is what makes the return defensible if the NRS asks questions later.
1. The sales schedule
Every invoice issued in the month, with date, customer, invoice number, amount before VAT, VAT charged and whether the item is standard-rated, zero-rated or exempt. Credit notes issued in the month reduce the totals and belong on the same schedule. A sale is usually counted in the month it was invoiced, not the month the customer paid, so unpaid invoices still appear.
2. The input VAT schedule
Every purchase on which you paid VAT and want to claim it: supplier, supplier TIN, invoice number, amount, VAT and what the purchase was for. A claim without a proper supplier invoice showing VAT is weak. Purchases that relate to exempt sales, or to things you cannot claim, should be kept apart.
3. The reconciliation
A short check that the sales schedule agrees with money received in the bank account and with the sales ledger, and that the input schedule agrees with payments made. Gaps are normal (credit sales, deposits, refunds), but each one needs an explanation.
Worked example: one month for a Lagos supplier
Example only, using the 7.5% rate. A company invoices ₦12,000,000 of standard-rated sales in September (before VAT). It buys stock and services worth ₦4,000,000 before VAT, all on proper VAT invoices.
| Line | Amount before VAT | VAT at 7.5% |
|---|---|---|
| Sales invoiced (output VAT) | ₦12,000,000 | ₦900,000 |
| Purchases with VAT invoices (input VAT) | ₦4,000,000 | ₦300,000 |
| Net VAT payable | ₦600,000 |
The ₦600,000 is due on or before 21 October. If one supplier's ₦800,000 invoice has no VAT breakdown, its ₦60,000 of VAT should not be claimed until a corrected invoice arrives; the net payable would then be ₦660,000. BusinessDay reports late-filing penalties of ₦50,000 for the first month and ₦25,000 for each further month, plus interest on unpaid tax, so a missing document is cheaper to chase in the first week than in the third.
What the Finance agent does, step by step
Pryme Business Accounts come with a Finance agent, one of the agents built by Pryme Intelligence. It prepares work; it does not file returns or pay tax by itself. For a VAT month, the preparation looks like this:
- Pulls the month's issued invoices and credit notes from invoicing and lists them as a sales schedule, flagging any invoice where VAT looks missing or miscalculated.
- Lists purchases recorded against the account and marks which ones have a supplier invoice with VAT and which need one.
- Matches incoming payments to invoices and lists anything received that has no invoice, such as deposits or unexplained transfers.
- Drafts a summary: total output VAT, total claimable input VAT, the net figure and the due date.
- Sends the pack for review. A person approves it; work above the ceiling the business has set needs that approval, and each step is recorded.
What to check before you approve
- Every exempt or zero-rated sale has a reason noted against it.
- No input VAT is claimed on a purchase without a valid supplier invoice.
- Credit notes have reduced output VAT in the month they were issued.
- The sales schedule agrees with the sales ledger, and the differences with the bank are explained.
- The filing portal and due date are current: check the NRS site, as platforms have been changing.
If customers deduct withholding tax from your invoices, that is a separate matter from VAT; see tracking WHT deductions with the Finance agent. Sellers of digital services into Nigeria can also read VAT on digital services sold into Nigeria.
Where Pryme fits
If your invoices and payments already run through a Pryme Business Account, the Finance agent has the records it needs to prepare the VAT pack each month, and the Chief of Staff can put the review in front of the right person before the 21st. Nothing is filed or paid without a person approving it. For a broader view of what agents can and cannot do, read AI agents for business finance.
Questions people ask
When is VAT return due in Nigeria?
BusinessDay (Feb 2026) reports the Nigeria Tax Administration Act requires filing and payment on or before the 21st day of the month after the transactions. Check the NRS site for any change.
What is the VAT rate in Nigeria in 2026?
7.5%. Forvis Mazars (March 2026) notes the Nigeria Tax Act 2025, effective 1 January 2026, keeps the rate at 7.5%, with some items exempt or zero-rated.
Can the Finance agent file my VAT return for me?
No. It compiles the schedules and a draft summary. A person in your business reviews, approves and files with the tax authority.
Do I need to file VAT if my turnover is small?
BusinessDay reports that businesses with annual turnover below ₦100 million are treated as small and do not charge or file VAT. Confirm your position with the NRS or an adviser.
Sources
- BusinessDay: Explainer – VAT, how and when to file yours (4 Feb 2026) · accessed Oct 2026
- Forvis Mazars: Nigeria's tax reform in focus – 2025 NTA VAT key business changes (16 Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.