NRS VAT 2026: How to Claim “Input Recovery” on Services and Save Your Business Millions

Under the [New 2026 Tax Rates], the 7.5% VAT remains, but the rules for recovery have changed for businesses.

The Nigeria Revenue Service (NRS) has fundamentally changed how Value Added Tax (VAT) works. For years, Nigerian businesses “lost” the VAT they paid on services. In 2026, that money is coming back to you.

What is “Input VAT Recovery”?

Under the old rules, you could only “offset” VAT on raw materials. If you paid VAT on your office rent, legal fees, or a new company car, you just lost that money.

The 2026 Shift: You can now recover VAT paid on all business-related purchases, including:

• Services: Professional consulting, utilities, and telecommunications.
• Capital Assets: Laptops, machinery, and company vehicles.

The Apportionment Rule

If your business sells both taxable goods (like electronics) and exempt goods (like basic food), you must “apportion” your recovery. If 80% of your sales are taxable, you can recover 80% of the VAT you paid on your expenses.

The 5-Year Window

Don’t rush, but don’t forget. The NRS now allows you to claim Input VAT recovery for up to 5 years from the date of the transaction.

Tip: To claim recovery, you must have a valid VAT invoice from your supplier. If their TIN is not verified, your claim will be rejected.