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
Nigerian VAT returns are due on or before the 21st of the month after the sales, under section 22 of the Nigeria Tax Administration Act 2025, and must be filed even for a month with no activity. Filing late costs ₦100,000 for the first month and ₦50,000 for each month after, and late payment adds 10% plus interest.
Every VAT-registered business in Nigeria files a VAT return each month, due on or before the 21st of the following month. That is set by section 22(1) of the Nigeria Tax Administration Act 2025, in force since 1 January 2026, and it applies "whether or not an economic activity has taken place", so a month with no sales still needs a return. The return goes to the Nigeria Revenue Service (NRS), formerly FIRS. A late return costs ₦100,000 for the first month and ₦50,000 for each month after.
The 21st rule
Section 22 of the Act sets out the monthly obligation:
- 22(1): a taxable person submits a VAT return to the NRS in the prescribed form on or before the 21st day of the following month, with or without a notice, whether or not any activity took place.
- 22(2): if the NRS extends the filing date, that does not extend the time to pay.
- 22(3): the return shows input tax paid, output tax collected and VAT payable on taxable supplies in the preceding month.
- 22(4) and (5): small businesses are exempt from filing, but may opt in by written notice.
- 22(6): a business that stops being a small business must file monthly from then on.
PwC's Nigeria summary (reviewed 29 May 2026) states the same 21st deadline and adds that VAT withholding agents, including government bodies and others appointed by the NRS, must remit VAT they withhold by the 14th of the following month.
| What | Deadline | Basis |
|---|---|---|
| Monthly VAT return (including nil returns) | 21st of the following month | NTAA s.22(1) |
| VAT withheld by a withholding agent | Remit by the 14th of the following month | PwC tax summary |
| VAT refund request | Within 12 months of the transaction | NTAA s.56(2) |
| Input VAT claim | Within five years after the period incurred | PwC tax summary |
Nil returns
Because section 22(1) applies whether or not activity has taken place, a registered business with no sales, or a quiet month, files a nil return. Skipping it is treated as failing to file, and the penalty runs. This easily catches seasonal businesses, startups before launch and companies winding down. If you have permanently stopped trading, notify the NRS so your registration is dealt with, rather than leaving nil returns unfiled; see closing a business.
Penalties for late filing and late payment
Section 101 of the Act covers failure to file any return, VAT included: an administrative penalty of ₦100,000 in the first month of failure and ₦50,000 for each further month. It also applies to knowingly filing incomplete or inaccurate returns. Some explainers, including a BusinessDay piece from February 2026, still quote ₦50,000 and ₦25,000; those figures do not match the Act, so rely on the section 101 amounts.
Late payment is separate. PwC says late payment of any tax incurs a penalty of 10% of the amount unpaid plus interest at the CBN Monetary Policy Rate plus a spread set by the Minister. A business that files on time but pays late avoids the filing penalty but not the payment charge.
Worked example (illustrative figures)
A trading company's output VAT for March is ₦900,000 and its input VAT on purchases is ₦350,000, so VAT payable is ₦900,000 − ₦350,000 = ₦550,000, due with the return by 21 April. It files and pays on 15 June, in the second month of default. The filing penalty is ₦100,000 + ₦50,000 = ₦150,000. On payment, the 10% penalty is 10% × ₦550,000 = ₦55,000, plus interest at the MPR plus spread for the period. Filing on 21 April, even before paying, would have saved the ₦150,000.
E-invoicing and real-time reporting
Section 23 lets the NRS deploy an Electronic Fiscal System, and section 22(10) says that once technology is deployed, returns may be required in real time or at other times the NRS prescribes. The Guardian reported in July 2026 that large taxpayers with turnover of ₦5 billion or more had a 31 July 2026 deadline to adopt e-invoicing, medium taxpayers were being onboarded from July 2026, and smaller businesses would follow later. Check whether your category has been called before relying only on the monthly return.
Steps to file on time
- Close your sales and purchase records for the month in the first week.
- Total output VAT on sales and input VAT on qualifying purchases and services.
- Log in to the NRS portal with your Tax ID and complete the VAT return. See filing a VAT return on the NRS portal.
- Pay the net amount, or carry forward a credit if input exceeds output.
- File a nil return in any month with no activity.
- Keep the acknowledgement and payment receipt for at least six years.
Not sure if you should be registered? Read whether a small business must charge VAT and input vs output VAT.
Where Pryme fits
The Compliance agent in a Pryme Business Account can keep the 21st in your calendar each month, and the Finance agent can prepare a draft of output and input VAT from your invoices and payments for a person to check and approve.
Questions people ask
When is VAT due in Nigeria?
The monthly VAT return is due on or before the 21st of the following month under section 22(1) of the Nigeria Tax Administration Act 2025.
Do I file a VAT return if I made no sales?
Yes. Section 22(1) requires a return whether or not an economic activity took place, so registered businesses file nil returns.
What is the penalty for late VAT filing in Nigeria in 2026?
Section 101 sets ₦100,000 for the first month and ₦50,000 for each further month. Late payment adds 10% of the unpaid tax plus interest.
Does a small business file monthly VAT returns?
No. Section 22(4) exempts small businesses from filing, unless they opt in by written notice. A business that grows past the threshold must start filing monthly.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria corporate tax administration (reviewed 29 May 2026) · accessed Oct 2026
- BusinessDay: Explainer, VAT, how and when to file yours (4 Feb 2026) · accessed Oct 2026
- The Guardian: NRS sets July 31 e-invoicing deadline for large taxpayers (27 Jul 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.