VAT for Nigerian small businesses, explained simply

Value Added Tax (VAT) trips up a lot of Nigerian founders, not because it is
complicated, but because nobody explains it plainly. Here is the short version.

Do you even need to charge VAT?

If your business is registered and your taxable turnover crosses the threshold,
you charge 7.5% VAT on most goods and services and remit it to FIRS. Plenty of
small businesses register voluntarily too, because it makes you look established
to larger clients.

What you actually have to do

• Add 7.5% VAT to the right line items on your invoices.
• Keep a clean record of VAT collected (output) and VAT paid on expenses (input).
• File and remit the difference to FIRS, on time, every month.

Where Claryeo helps

Because your invoices and bank transactions live in one place, Claryeo tracks
output and input VAT as you go and rolls it into an export-ready summary. No
shoebox of receipts in March, just a number you can trust any day of the year.