digiMall VendorTax Reporting & Compliance for Vendors
Understanding tax obligations, generating reports, and maintaining compliance as a digiMall vendor in Nigeria
Tax Compliance Made Simple
Stay compliant with Nigerian tax laws and streamline your reporting process. digiMall provides tools and guidance to help you meet all tax obligations efficiently.
Understanding Your Tax Obligations
As a vendor in Nigeria, you have specific tax responsibilities that vary based on your business structure, turnover, and location.
Federal Taxes
- • Company Income Tax (CIT) - 30% for companies
- • Value Added Tax (VAT) - 7.5% on goods/services
- • Withholding Tax (WHT) - Various rates
- • Education Tax - 2% of assessable profit
- • National Information Technology Development Agency (NITDA) Levy
State & Local Taxes
- • Personal Income Tax (PAYE) - Progressive rates
- • Business Premises Registration
- • Signage and Advertisement Permits
- • Local Government Development Levy
- • State-specific business taxes
Business Registration & Tax IDs
Proper business registration is essential for tax compliance and accessing digiMall's advanced vendor features.
Required Registrations
Business Registration
- • CAC Business Name/Company Registration
- • Tax Identification Number (TIN)
- • VAT Registration (if applicable)
- • State Internal Revenue Service registration
Optional but Beneficial
- • Nigerian Investment Promotion Commission (NIPC)
- • Export/Import licenses (if applicable)
- • Industry-specific certifications
- • Professional body memberships
Essential Record Keeping
Maintaining accurate financial records is crucial for tax compliance and business growth. digiMall provides tools to simplify this process.
Required Records
- • Sales Records: All invoices and receipts
- • Expense Records: Business expenditure proof
- • Bank Statements: All business accounts
- • Inventory Records: Stock movements and valuations
- • Employment Records: Staff and contractor payments
- • Asset Records: Equipment and depreciation
- • Tax Returns: Previous years' filings
- • Correspondence: Tax authority communications
- • Audit Trail: Complete transaction history
VAT Registration & Compliance
Value Added Tax (VAT) registration is mandatory for businesses with annual turnover exceeding ₦25 million or those that voluntarily register.
VAT Registration Thresholds
Mandatory Registration
- • Annual turnover > ₦25 million
- • Companies providing taxable goods/services
- • Importers of goods for commercial purposes
- • Non-resident companies with Nigerian operations
Voluntary Registration
- • Businesses below ₦25 million threshold
- • Startups planning to exceed threshold
- • Businesses dealing with VAT-registered clients
- • Export-oriented businesses
VAT Calculation & Collection
Standard VAT Rate: 7.5% on most goods and services
Collection Method: Add VAT to product prices for Nigerian customers
Remittance: Monthly to Federal Inland Revenue Service (FIRS)
Income Tax Compliance
Income tax obligations depend on your business structure - sole proprietorship, partnership, or limited liability company.
Sole Proprietorship
- • Pay PAYE through state tax office
- • Progressive tax rates (7-24%)
- • Monthly/annual filing options
- • Personal tax reliefs available
Partnership
- • Partners pay individual PAYE
- • Partnership files information returns
- • Profit allocation to partners
- • Withholding tax on certain income
Limited Company
- • Company Income Tax at 30%
- • Small company rate: 20% (≤₦25M)
- • Medium company rate: 25% (₦25M-₦100M)
- • Annual tax returns mandatory
digiMall Tax Tools & Reports
Take advantage of built-in tax management tools to simplify compliance and reduce administrative burden.
Automated Tax Reports
Available Reports
- • Monthly VAT returns
- • Annual income summaries
- • Quarterly tax estimates
- • Expense categorization reports
- • Profit and loss statements
Export Options
- • PDF format for filing
- • Excel/CSV for accounting software
- • Integration with tax software
- • Email delivery to accountants
- • Cloud storage backup
Tax Configuration Settings
- • Set your business structure and tax obligations
- • Configure VAT rates and exemptions
- • Define expense categories for deductions
- • Set up automatic tax calculations
- • Schedule periodic tax reminders
Tax Compliance Calendar
Stay on top of important tax deadlines with this comprehensive compliance calendar for Nigerian vendors.
Monthly Obligations
Annual Obligations
Avoiding Penalties & Ensuring Compliance
Understanding potential penalties helps you maintain compliance and avoid costly mistakes that can impact your business.
Common Penalties
Late Filing Penalties
- • VAT: ₦50,000 + 5% of tax due
- • PAYE: ₦25,000 + 10% of tax due
- • CIT: ₦25,000 + 5% of tax due
- • Audit: ₦500,000 for failure to conduct
Interest on Late Payment
- • 21% per annum on unpaid taxes
- • Calculated from due date
- • Compounds monthly
- • Additional penalties may apply
Tax Compliance Best Practices
- • Set up automatic tax reminders and calendar alerts
- • Keep digital copies of all financial documents
- • Reconcile digiMall earnings with bank deposits monthly
- • Consult a qualified tax professional annually
- • Use separate business bank accounts for clear records
- • File returns early to avoid last-minute issues
- • Maintain 7 years of business records
- • Stay updated on tax law changes and rates