Nigeria’s New Tax Refund Rulebook Sets 12-Month Window and 30-Day Turnaround for VAT Claims

Summary 

• The NRS issued Guidelines on Tax Refund(s) establishing a separate framework for VAT refunds: applications must be filed within 12 months of the transaction giving rise to the claim, or the entitlement is forfeited. 

• Valid VAT refund requests must be processed within 30 days of receipt, with the NRS either refunding the excess VAT or applying it against outstanding liabilities at the taxpayer’s request. 

• VAT refunds may arise where input VAT exceeds output VAT, on humanitarian donor-funded projects, where output VAT was deducted at source, from errors, or on exempt/zero-rated items; fraudulent claims trigger 100% repayment plus interest. 

Extended article 

The Nigeria Revenue Service (NRS) has issued Guidelines on Tax Refund(s) setting out the conditions, procedures and timelines for refunds under the Nigeria Tax Administration Act 2025 and Nigeria Tax Act 2025. The legal basis is derived from sections 55 and 56 of the NTAA and section 155(2) of the NTA. While non-VAT refunds are generally settled within 90 days of a decision and must be claimed within 6 years, the Guidelines establish a distinct, faster framework for VAT. 

VAT refund applications may be submitted electronically through the NRS tax administration platform or manually to the relevant Executive Director, and must be submitted within 12 months of the date of the transaction giving rise to the claim – failure to comply results in forfeiture. Valid requests must be processed within 30 days of receipt, with the NRS either refunding the excess VAT or applying it against any outstanding liability at the taxpayer’s request. Situations giving rise to VAT refunds include input VAT exceeding output VAT, VAT on humanitarian donor-funded projects, inability to recover input VAT because output VAT was deducted at source, errors or omissions causing excess payments, and VAT on exempt or zero-rated items. 

Supporting documentation must include a schedule of the claim, evidence relating to zero-rated supplies where applicable, VAT remittance evidence, NRS receipts, import documents where relevant and exemption certificates. Diplomats, diplomatic missions and international organisations may claim within 12 months, with the Ministry of Foreign Affairs confirming eligibility. A person obtaining a VAT refund through a false or fictitious claim is liable to repay 100% of the refund plus interest at the Central Bank Monetary Policy Rate. Although dated 29 June 2026, the Guidelines became publicly available on 30 July 2026. 

Sources: Nigeria Revenue Service (official website); Nairametrics – NRS tax administration coverage. 

 

---

---