FIRS set to implement new VAT filing procedures for suppliers, importers

The Federal Inland Revenue Service (FIRS) has provided updates on the implementation of the input value-added tax (VAT) filing procedures via its administration solution, TaxPro-Max.

TaxPro-Max enables seamless registration, filing, payment of taxes, and automatic credit of withholding tax as well as other credits to the taxpayer’s accounts among other features.

Input VAT is the value-added tax on the price paid for eligible goods or services. Firms that are VAT-registered can charge and add VAT to the value of goods and services they supply.

Providing guidelines on VAT filing processes on the TaxPro-Max platform in a statement on Friday, FIRS said “taxpayers are to file their April 2023 returns, in May 2023 as normal. All the disabled columns will be opened [and] the auto credit for purchases will be disabled”.

The service said from June 1, 2023, taxpayers claiming input VAT for purchases should upload a purchase schedule; while those claiming input VAT for withholding VAT (WVAT) were asked to upload a WVAT schedule.

WVAT is a method of collecting VAT where a portion of the VAT is collected by appointed withholding VAT agents from payments made to a local supplier of vatable goods and services schedule.

FIRS also directed businesses claiming input VAT for imports to upload a purchase imports schedule, while also providing steps on how all input VAT claims from June 1, 2023, can be applied for.

“For illustration purposes, June 1 to June 30 transactions are treated as month one,” FIRS said.

“The month following the month of transactions, in our example, using the month of June, will be July 1 to July 21 at midnight: file returns of month 1 transactions.

“The month following the monthly VAT returns were filed, in our example, using the month of July, this will be, August 1 to August 31: the input VAT claims that TaxPro MAX is not able to verify, validate and cross-check online, are manually traced, using the data entered by the taxpayer when filing.”

In addition, the FIRS said all suppliers that are traced will be required to comply immediately.

“The unremitted amount will be raised as a liability in their TaxPro MAX account, with penalty and interests applied and accruing. Audit and enforcement will be triggered in line with the threshold of timelines,” the agency added.


The service said any input tax claimed by a purchaser whose supplier could not be traced shall be disallowed, and the amount raised as liability for the purchaser, “except the claimant can aid the service to locate such supplier within the timeline stated, i.e. from the first day to the last day of the month, following the month the VAT return was filed”.

“The month following the month of manually tracing the suppliers that TaxPro MAX is not able to check online, in our example, this will be, September 1st to September 30th,” the service said.

The agency added that all cases of unverified claims in the system will be closed.

“For traced suppliers, raise liability for the supplier and receive payment; un-traced suppliers, raise liability for the purchaser and receive payment; and commence a prosecution for false claims,” the FIRS said.

“Commence enforcement actions on the supplier, if payments are not received within the specified timeline.”