{"id":295626,"date":"2023-07-12T16:09:54","date_gmt":"2023-07-12T15:09:54","guid":{"rendered":"https:\/\/nigerianfinder.com\/?p=295626"},"modified":"2023-07-12T16:09:54","modified_gmt":"2023-07-12T15:09:54","slug":"how-to-calculate-vat-penalty-in-nigeria","status":"publish","type":"post","link":"https:\/\/nigerianfinder.com\/how-to-calculate-vat-penalty-in-nigeria\/","title":{"rendered":"How to Calculate VAT Penalty in Nigeria\u00a0"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Are you a VATable person under the Value Added Tax Act and have failed to fulfil the obligations expected of a VATable person? If yes, you probably already know that you have defaulted and there are associated penalties for every VATable offence. It could be you failed to register for VAT or failed to submit returns to the FIRS. Or your offence could be a failure to remit VAT or failure to notify change of your business address or permanent cessation of business. Whatever your offence might be, read on as we discuss how to calculate the VAT penalty in Nigeria.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-295630\" src=\"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-VAT-Penalty-in-Nigeria-.jpg\" alt=\"How to Calculate VAT Penalty in Nigeria\u00a0\" width=\"604\" height=\"258\" srcset=\"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-VAT-Penalty-in-Nigeria-.jpg 604w, https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-VAT-Penalty-in-Nigeria--600x256.jpg 600w\" sizes=\"(max-width: 604px) 100vw, 604px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">How to calculate VAT penalty in Nigeria would be discussed below:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What is the VAT Rate in Nigeria?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The current VAT rate in Nigeria is 7.5%.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">Who is Considered a VATable Person Under the Value Added Tax Act (as amended)?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before the recent amendments to the Value Added Tax Act, a taxable person referred to both individuals and corporate bodies that trade in taxable supplies. However, the recent amendments to the Value Added Tax Act created a threshold for taxable persons to be individuals and corporate bodies with taxable supplies of N25 million or more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The implication of the introduction of this threshold of N25 million for compliance with VAT obligations, therefore, excludes suppliers that fall below the above-stated threshold from complying with the obligations of a taxable person under the VAT Act. Therefore only suppliers with a threshold of N25 million and above are obligated to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">issue VAT notices\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">charge and collect VAT<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">file VAT returns\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">remit the VAT collected\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, a supplier below the N25 million threshold may voluntarily charge, collect, remit the VAT collected, and file monthly returns to the Federal Inland Revenue Service (FIRS) at any time of its discretion. Before such a supplier can do so, the FIRS must be informed prior, which thereby makes such a person (individuals and corporate bodies) subject to the provisions of the VAT Act applicable to suppliers with N25 million and above.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">The introduction of this N25 million threshold for compliance with VAT obligations does not cover companies engaged in upstream petroleum operation, even when such company has:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">not commenced trade or business operations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">no turnover<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">turnover not up to the N25 million threshold\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is important to note that where a supplier expects to meet or has met the N25 million threshold in a calendar year, that supplier becomes taxable under the VATA, even when in subsequent years it fails to meet the N25 million turnover threshold.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">Determination of N25 Million Turnover Threshold\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The amended Value Added Tax Act outlines four ways that determine if a supplier of VATable goods and services meets the criteria of the N25 million turnover threshold. The first is a taxable person who has made taxable supplies of N25 million before the introduction of this current VAT threshold shall go on with charging, collecting, remitting the tax, and filing monthly VAT returns, even when such a taxable person fails to make N25 million on taxable supplies in the current year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another determination of a taxable person under the VAT Act is one who did not fulfil the N25 million taxable supplies before the 1st of February 2020 (the date of the commencement of the new VAT tax rate of 7.5%) but attains the threshold of N25 million taxable supplies at any time within the year. And upon attainment of the N25 million threshold, such supplier shall immediately commence to charge, collect, remit the tax, and file monthly returns.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Another criterion for determining the N25 million threshold of a supplier of VATable goods and services has not yet attained the threshold but expects to attain the N25 million threshold at a future date within the calendar year. Such a supplier is therefore permitted to forthwith start to charge, collect, remit the tax, and file monthly returns to the Federal Inland Revenue Service.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to the three scenarios above, a taxable person who makes taxable supplies amounting to N25 million and above within a year, even if part of the whole of such supplies are exempt from VAT, is required to file monthly returns to the Federal Inland Revenue Service (FIRS).<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What Goods and Services are Exempt from VAT?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The First Schedule of the VAT Act contains exempted goods and services. They are as follows:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Goods Exempted from VAT in Nigeria:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical and pharmaceutical products\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Basic food items\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Books and educational materials\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Baby products\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fertilizer, locally produced agricultural and veterinary medicine, farming machinery, and farming transportation equipment\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Oil exports;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plant, machinery, and goods imported for use in the export processing zone\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">or free trade zone\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plant, machinery, and equipment purchased for utilisation of gas in downstream petroleum operations\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tractors, ploughs, and agricultural equipment and implements purchased for agricultural purposes\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Locally manufactured sanitary towels, pads, or tampons;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commercial aircraft, commercial aircraft engines, and commercial aircraft spare parts.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Services Exempted from VAT in Nigeria:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical Services;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Services rendered by microfinance banks, people\u2019s banks, and mortgage Institutions\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plays and performances conducted by educational institutions as part of learning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All exported services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tuition relating to nursery, primary, secondary, and tertiary education<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Airline transportation ticket<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hire, rental, or lease of tractors, ploughs, and other agricultural\u00a0<\/span><span style=\"font-weight: 400;\">equipment for agricultural purposes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What is Zero-rated VAT and What Transactions are Zero-rated?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Value Added Tax Act makes provisions for some VATable goods and services to be subject to zero per cent VAT and such transactions involving such goods and services include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goods and services purchased by diplomats\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goods and services purchased by humanitarian donor-funded projects<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">How to Calculate VAT Penalty for Failure to Notify Change of Address or Permanent Cessation of Trade or Business in Nigeria<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is an offence under the Value Added Tax Act for a VATable person to change his business address or permanently stop trade or business in Nigeria without duly notifying the FIRS. The imposed penalty for the aforementioned offences is N50,000 for the first month in which the failure occurs and N25,000 for each subsequent month the failure persists.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Illustration<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">What would be the penalty for AAT Limited, a taxable person under the act, who permanently ceased trading (or doing business) all through 2021 (January &#8211; December) but failed to let the relevant tax authorities know until the FIRS found out on January 1, 2022?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Find the applicable solution below:\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Month<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jun<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cumm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\"> N50,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N500,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N675,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N875,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,100,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,625,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N300,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N275,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N250,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N200,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N175,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N150,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N100,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N75,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The cumulative amount of penalty for failure of AAT to notify the FIRS of cessation of trade is N1,925,000 only.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">How to Calculate VAT Penalty for Failure to Register for VAT in Nigeria\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Value Added Tax Act (as amended) imposes a penalty of N50,000 for the first month a VATable person fails to register his business for VAT (after the initial 6 months grace from the commencement of business) and N25,000 for each subsequent month in which the failure continues.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Illustration<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">What is the VAT penalty AAL Limited, a VATable person, is expected to for not failing to register for VAT from January 1, 2022, to December 2022? (We assume AAL Limited has already exceeded the 6 months grace as of January 1, 2022, and FIRS found out of this on January 1, 2023).\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Month<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jun<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cumm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\"> N50,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N500,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N675,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N875,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,100,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,625,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N300,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N275,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N250,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N200,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N175,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N150,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N100,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N75,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The cumulative amount of penalty for failure to register for VAT from the above illustration is N1,925,000 only.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">How to Calculate VAT Penalty for Failure to Submit VAT Returns in Nigeria\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When a VATable person fails to submit VAT returns to the FIRS, the Value Added Tax Act imposes a penalty of N50,000 for the first month in which the failure occurs and N25,000 for each subsequent month in which the failure continues.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Illustration<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here&#8217;s an example you can use to learn how to calculate VAT penalty for failure to submit VAT returns:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AAT Limited, a taxable person under the Value Added Tax Act, approached FIRS Ikorodu Tax Office on January 1, 2023, to file its annual returns for the 2022 assessment year. In the course of reviewing its file, it was discovered that AAT Limited did not submit VAT returns for 2022 (January &#8211; December) transactions. The applicable penalty according to Section 35 of the VAT Act is determined as follows:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Month<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jun<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cumm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jan<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Feb<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\"> N50,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Apr<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">May<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">June<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N500,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Jul<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N675,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Aug<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N875,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sep<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,100,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Oct<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,350,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Nov<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,625,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dec<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N300,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N275,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N250,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N225,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N200,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N175,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N150,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N125,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N100,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N75,0000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N1,925,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The cumulative amount of penalty for failure to submit returns is N1,925,000 only.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">How to Calculate VAT Penalty for Failure to Remit VAT in Nigeria\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Failure to remit VAT attracts a penalty of 10% of the VAT payable, plus interest at the prevailing Central Bank of Nigeria\u2019s minimum rediscount rate (MRR).<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you a VATable person under the Value Added Tax Act and have failed to fulfil the obligations expected of &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"How to Calculate VAT Penalty in Nigeria\u00a0\" class=\"read-more button\" href=\"https:\/\/nigerianfinder.com\/how-to-calculate-vat-penalty-in-nigeria\/#more-295626\" aria-label=\"More on How to Calculate VAT Penalty in Nigeria\u00a0\">Read more<\/a><\/p>\n","protected":false},"author":2534,"featured_media":295630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-VAT-Penalty-in-Nigeria-.jpg","jetpack_shortlink":"https:\/\/wp.me\/p6w1sx-1eUa","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295626"}],"collection":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/users\/2534"}],"replies":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/comments?post=295626"}],"version-history":[{"count":1,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295626\/revisions"}],"predecessor-version":[{"id":295631,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295626\/revisions\/295631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/media\/295630"}],"wp:attachment":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/media?parent=295626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/categories?post=295626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/tags?post=295626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}