03/04/2026
CITN Uyo Holds Technical Session on VAT Reforms Under 2025 Tax Acts
Mary Ekere
The Chartered Institute of Taxation of Nigeria, CITN Uyo and District Society, has held a technical session on “Key Reforms in Nigeria VAT Regime Under the 2025 Tax Acts: Implications for Businesses and Tax Practitioners”.
The Technical Session, a part of the April General Meeting of the Society, was held on Wednesday at the ICT Hall, Accountant General's Office, Uyo.
Chairman of the Society, Dcns Idorenyin Charles William, said the engagement would significantly enhance the professional competence of members and better position them for effective practise in Nigeria’s evolving tax environment.
For business operators, the Chairman noted that the knowledge will help them in repositioning their businesses and avoid penalties that will impact on their operations.
She also appreciated the resource person, Dr Nsima Umoh, for the insightful knowledge shared during the session.
Delivering the presentation, Dr Umoh highlighted that the new VAT framework is anchored on three core pillars—tax law, tax policy, and tax administration—designed to provide a more structured and coherent system. He explained that the clear separation improves legal clarity, reduces interpretational conflicts, and enhances tax certainty, a major concern under the previous VAT regime.
The resource person further noted that businesses with an annual turnover below ₦100 million are exempt from VAT obligations but are still required to file monthly returns, due by the 21st day of the following month. He added that failure to comply attracts automated penalties through a system-based default tracking mechanism.
On the scope of the reforms, Dr Umoh explained that the VAT base has been expanded to capture informal digital transactions and previously ambiguous service categories, while also closing loopholes in non-taxable classifications.
He also pointed out a major shift in the mandatory VAT registration for foreign digital service providers and non-resident suppliers, including streaming platforms, SaaS companies, and online marketplaces, with compliance options such as direct registration or the appointment of local representatives.
Speaking on VAT computation, he clarified that Output VAT refers to tax charged on goods and services supplied to customers, while Input VAT is the tax incurred on business purchases, particularly in manufacturing, where applicable.
According to him, where Output VAT exceeds Input VAT, the difference is remitted to the tax authority, with Input VAT claims allowed only when directly linked to taxable supplies and supported by valid fiscal invoices.
Dr Umoh further highlighted the introduction of the Electronic Fiscal System (EFS), which enables real-time capture of business transactions and directly links invoices to tax authorities, thereby strengthening transparency and compliance.
He advised businesses to upgrade to e-invoicing compatible software and adopt API-integrated systems, noting that penalties now apply for incorrect filings and non-compliance with digital reporting requirements.
The resource person emphasised the growing role of tax professionals in dispute resolution, digital tax compliance advisory, VAT system audits and cross-border tax structuring, urging practitioners to remain proactive and adaptable.
Overall, he described the reformed VAT system as broader in scope, stricter in enforcement, and smarter through digital monitoring, calling on businesses to conduct regular VAT health checks to ensure full compliance.
