Nigeria's Tax Landscape Changed in 2026 — Is Your Shop Keeping Up?
As of January 1, 2026, the Nigeria Revenue Service (NRS) formally replaced FIRS as the country's federal tax authority, under the Nigeria Revenue Service (Establishment) Act 2025. Alongside it, the new Rev360 platform has been rolling out to replace the old TaxPro-Max e-filing system. For small business owners already stretched thin, keeping up with which body, which portal, and which rules apply can feel like a full-time job on top of running a shop.
Pocket Shop Manager's Tax Engine is built to absorb that complexity automatically, so VAT and tax compliance happens in the background of your normal, everyday sales — not as a separate monthly ordeal.
What the Tax Engine Tracks For You
₦50M Turnover Shield
A live progress bar against the CIT exemption threshold, so you're never caught off guard.
Output & Input VAT
7.5% VAT tracked on every sale and every recorded business expense.
Filing Deadlines
Countdowns to your PAYE (10th) and VAT (21st) filing dates each month.
Rev360 CSV Export
A file formatted for direct upload to the Rev360 portal.
How the ₦50 Million Turnover Shield Works
Under Nigeria's Finance Act, businesses with annual turnover below ₦50 million qualify for a 0% Company Income Tax rate. The Turnover Shield is a real-time visual tracker showing exactly where your cumulative year-to-date revenue stands against that threshold — so you can plan growth deliberately instead of crossing into a higher tax bracket without realising it happened.
Output VAT vs. Input VAT, Explained Simply
Output VAT is the 7.5% you charge customers on sales — money you're collecting on NRS's behalf. Input VAT is the 7.5% your own suppliers charged you on business purchases, which you're entitled to reclaim. Record your expenses with VAT paid marked correctly, and PSM automatically nets Output VAT against Input VAT to show your actual VAT payable — often reducing your tax bill significantly compared to only tracking what you collected.
Getting Your Data Into Rev360
On the Tax Engine tab, tap "Export for NRS" and PSM generates a CSV file formatted to the exact column structure the Rev360 platform expects — Date, Transaction Type, Description, Amount, VAT, and Net Amount for every transaction in the selected period. Log in to Rev360, upload the file, and you're done — no manual re-entry of numbers you've already recorded once at the point of sale.
The Education Development Levy
Larger businesses also face the Education Development Levy — a 4% charge on assessable profits, calculated separately from CIT. If your business crosses the relevant revenue threshold, the Tax Engine calculates this automatically based on your Business Type setting, so you're not caught off guard by an obligation you didn't know applied to you.
Why Building This for Nigeria Specifically Matters
Generic accounting software built for other markets doesn't know what Rev360 is, doesn't track a ₦50 million CIT threshold, and doesn't calculate 7.5% VAT by default. Pocket Shop Manager was designed from the ground up around Nigeria's actual tax structure — not adapted after the fact — which means the numbers it shows you are the numbers that actually apply to a Nigerian small business in 2026, not an approximation borrowed from somewhere else.
Staying Ahead of Deadlines
Missing a filing deadline isn't usually a matter of not wanting to comply — it's simply losing track of the date in the middle of running a busy shop. The Tax Engine's countdown to your PAYE (10th of each month) and VAT (21st of each month) deadlines sits right on your dashboard, so the date arrives as a reminder you've already seen coming, not a surprise.
Frequently Asked Questions
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