How to File VAT Returns in Nigeria Using TaxPro Max (Step-by-Step)

Gone are the days of carrying massive physical ledgers to a local Federal Inland Revenue Service (FIRS) office to queue for hours just to file your taxes. The introduction of TaxPro Max has fully digitized the Nigerian tax administration system.

If your business is registered for Value Added Tax (VAT) in Nigeria, you are legally required to file your VAT returns by the 21st day of every month for the transactions that occurred in the previous month. Failure to file incurs an immediate penalty of ₦50,000.

In this guide, we provide a complete, plain-English walkthrough on how to file your monthly VAT returns correctly using the TaxPro Max portal.

Step 1: Preparation is Everything

Before you even open the browser to log in, you must have your data organized. Opening TaxPro Max and trying to calculate numbers on the fly will result in costly errors.

You need:

1. Total Sales (Output): The total monetary value of all goods or services you sold in the preceding month.
2. Exempt/Zero-Rated Sales: Any portion of your sales that are exempt from VAT (e.g., exported services, basic food items).
3. VAT Collected (Output VAT): The actual 7.5% you charged your clients. (If you use InvoiceGenerator.ng, this is easily calculated by reviewing your past invoices).
4. VAT Paid (Input VAT): The VAT you paid to suppliers for direct raw materials or goods for resale. (Note: You cannot claim Input VAT on administrative overheads like rent, diesel, or stationaries).

Step 2: Log into TaxPro Max

1. Open your browser and navigate to the official FIRS portal at taxpromax.firs.gov.ng.
2. Log in using your Registered Email Address (or TIN) and your highly secure Password.
3. Once successfully authenticated, you will be taken to your personalized unified dashboard. Here, you can see your corporate details, outstanding liabilities, and unread FIRS messages.

Step 3: Navigate to Taxes Due

On the left-hand navigation menu or the main dashboard cards, locate the section titled "Taxes Due".

This section automatically populates with the tax obligations you are expected to fulfill for the current period based on your business profile. Look for the row labeled Value Added Tax (VAT) for the specific month you are filing for, and click the "Process" or "File" button next to it.

Step 4: Complete the VAT Return Form

You will now see the digital VAT Form 002. It requires you to input data into specific schedules.

Schedule 1: Sales/Income

• Total Sales / Revenue: Enter your gross revenue for the month.
• Less: Exempt Supplies: Enter the value of goods/services you sold that are legally exempt from VAT.
• Less: Zero-Rated Supplies: Enter the value of exported goods/services.
• Total Value Subject to VAT: The portal will automatically calculate this by subtracting exemptions from your total sales.
• VAT Charged (Output VAT): The system usually automatically calculates 7.5% of the taxable value. Ensure this matches your meticulous invoicing records.

Schedule 2: Purchases (Input VAT)

If you made purchases that qualify for Input VAT deduction (goods purchased strictly for resale or raw materials creating a new product):

• Provide supplier details, their TIN, and the exact VAT you paid to them.
• The system cross-references TINs to ensure the supplier actually remitted that VAT.
• Important: If you are a service-based business (consultant, agency, freelancer), your allowable Input VAT is generally zero. Only manufacturers and traders typically claim Input VAT in Nigeria.

Step 5: Review the Final Assessment

Once both schedules are completed, click "Next" or "Review". The TaxPro Max engine will calculate your net liability:

Output VAT (What you collected) MINUS Input VAT (What you paid) = VAT Payable to FIRS.

Check these numbers meticulously. If the amount payable is higher than the cash you set aside, you made an invoicing or accounting error during the month.

Step 6: Generate the PRN and Make Payment

If the assessment is accurate:

1. Submit the return by accepting the declaration prompt.
2. The system will instantly generate a Payment Reference Number (PRN) (formerly known as a Remita Retrieval Reference or RRR).
3. You will use this PRN to make the actual cash payment.

How to Pay:

• Online Banking: Log into your corporate bank’s internet banking portal, go to "Bill Payments > Federal Government / FIRS," and input the PRN.
• Remita: Pay directly on Remita.net using the PRN.
• Bank Branch: Walk into any commercial bank, hand the teller your printed PRN slip, and transfer the funds.

Step 7: Print Your Receipt

Usually within 24 hours of successful payment, the TaxPro Max system will reconcile with Remita. Log back into the portal, navigate to the "Receipts" tab, and generate your official FIRS Tax Receipt. Save this PDF securely; you will need it when applying for your annual Tax Clearance Certificate (TCC).

Pro-Tip for Flawless VAT Filing

The biggest reason SMEs struggle with TaxPro Max is because their invoices are chaotic. If your invoices do not clearly separate the subtotal from the 7.5% VAT, calculating your output VAT will be a nightmare.

Standardize your workflow today by using InvoiceGenerator.ng. Generating VAT-compliant invoices takes less than a minute, ensuring that at the end of the month, your math is perfectly aligned with what FIRS expects to see.