How ERPNext Helps Nigerian Businesses Automate VAT, WHT, and PAYE Taxes

Navigating Nigeria’s tax landscape—VAT, WHT, PAYE, and more—can be a complex task for SMEs and large enterprises alike. Fortunately, ERPNext simplifies tax compliance through smart configuration, automation, and real-time reporting. This article explains how ERPNext handles Nigerian taxes, with practical insights for business owners, accountants, and ERP users.

1. Value Added Tax (VAT) Automation

   Key Features:

   • Customizable tax templates for 7.5% VAT on goods and services.

   • Automatic VAT calculation on sales and purchase invoices.

   • VAT input and output tracking for accurate remittance.

   Benefits:

   • Reduces manual calculations.

   • Ensures consistent application across transactions.

   • Generates VAT reports needed for FIRS filing.

     
     

2. Withholding Tax (WHT) Compliance

   Key Features:

   • Set up WHT rates for contractors, rent, consultancy, etc. (e.g. 5%, 10%).

   • Automatic deduction at point of payment.

   • WHT certificates generated for vendors.

   Benefits:

   • Prevents over/under deduction.

   • Helps fulfill statutory WHT obligations to FIRS/state IRS.

   • Tracks withheld amounts per vendor for ease of filing.

     
     

3. PAYE and Employee Taxes

   Key Features:

   • Monthly PAYE deductions based on Nigerian tax brackets.

   • Payroll setup with pension, NHF, and NSITF contributions.

   • Generation of monthly schedules for Lagos State or relevant tax authorities.

   Benefits:

   • Automates compliance with labor and tax laws.

   • Reduces errors in salary processing.

   • Supports bulk upload or integration with eTax systems.

   
   

4. Real-Time Tax Reporting and Filing Support

   ERPNext Reports:

   • VAT Summary and Input/Output reports.

   • WHT Payable per vendor/customer.

   • PAYE deductions by month and employee.

   Benefits:

   • Prepares your books for audits.

   • Supports electronic tax submissions.

   • Facilitates year-end compliance and returns.

     
     

5. Custom Setup for Nigerian Regulatory Requirements

   • Chart of Accounts tailored for Nigerian buinesses.

   • Tax categories aligned with FIRS and state IRS standards.

   • Option to integrate with Remita or TaxPro Max via API or export.

ERPNext is not just an ERP—it’s your automated tax assistant. With native support for Nigerian VAT, WHT, PAYE, and other statutory deductions, businesses can focus on growth while staying compliant. Whether you’re a growing SME or a large distributor, ERPNext ensures your tax processes are accurate, auditable, and up-to-date.

Want to see ERPNext in action? Book a demo or contact us today to learn how it can work for your specific setup in Nigeria.