- The Nigeria Tax Act 2025, effective January 1, 2026, expands VAT recovery to include input VAT on services and fixed assets, not just raw materials and resale goods.
- VAT-registered businesses can claim this input VAT if the expenses are directly related to taxable supplies.
- The reform improves cash flow and lowers costs by shifting the VAT burden to the final consumer.
- Businesses with both taxable and exempt supplies must apportion recoverable VAT.
- Claims and refunds require strict records, valid tax invoices, and submission within 12 months of the transaction date.
Source: businessday.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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