Nigeria Tax Act, 2025, Eases VAT Recovery for Businesses
For several years, businesses in Nigeria faced challenges under the now-repealed Value Added Tax Act, which restricted the recovery of input VAT. Companies could only recover VAT on goods for resale and raw materials for manufacturing, forcing them to absorb VAT on essential services and capital assets.
This led to increased costs for consumers and discouraged investment. However, Section 155 of the new Nigeria Tax Act, 2025, has modernized input VAT recovery, allowing businesses to deduct VAT on a broader range of operational expenses.
This legislative change aligns Nigeria with global best practices and aims to provide financial relief to businesses, enabling them to operate more effectively and competitively.
Plus234Feed summary based on reporting from The Will. Read the original report below.
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