Section 156

(1) A taxable person shall, not later than the due date for rendering
input tax and
the relevant tax return prescribed by the Nigeria Tax Administration Act, 2025,
remission of
where the –
VAT
(a) output VAT exceeds the input VAT, remit the excess to the Service;
or
(b) input VAT exceeds the output VAT, be entitled to utilise the excess
tax as a credit against subsequent months.
Nigeria Tax Act, 2025 2025 No. 7 A 475
(2) A taxable person shall be entitled to a refund of excess VAT not
utilised as a credit, upon request to the Service and provision of such information
or documents as the Service may require.
(3) An importer of taxable goods shall, before clearing those goods, pay
to the Service the VAT on the goods.
(4) A person whose supplies are chargeable to VAT at 0%, shall pay
VAT on taxable supplies consumed in the production of its supplies, and may
thereafter request for a refund of the VAT paid.
(5) Input tax incurred by a registered person on any taxable supply, including
services and fixed assets made to such person, may be deducted from the tax
payable by the person on its taxable supplies at the end of the tax period in
which the supply occurred, but only to the extent that the input tax was incurred
for the purpose of consumption, use or supply in the course of making taxable
supplies.
Provided that –
(a) where any input tax is incurred in making both taxable and non-
taxable supplies, only the proportion relating to making taxable supplies may
be deducted
(b) the input tax shall be allowable for deduction within five years after
the end of the tax period in which the input tax was incurred.
(6) The input tax which may be deducted in line with subsection (5) shall
be limited to taxable supplies made as from the commencement of this Act.