Configure Flux for VAT
Flux is TaxStreem's tax filing engine. It accepts VAT transaction data, validates it against Nigerian VAT rules, submits the return to NRS, and returns a filing reference number.
VAT status codes
Every line item in a VAT filing must carry a VAT status code:
| Field | Type | Description |
|---|---|---|
| 0 | VATtable | Standard 7.5% VAT applies. Most goods and services. |
| 1 | Zero-rated | 0% VAT. Revenue is the full amount. E.g. pharmaceutical, agricultural, educational. |
| 2 | Exempt | No VAT logic applies. E.g. baby products, sanitary towels, agric equipment. |
VAT computation rules
- Output VAT = VAT collected on sales (only applies to paid invoices and bank credits)
- Input VAT = VAT paid on vendor purchases (only settled/paid vendor invoices)
- Net VAT = Output VAT − Input VAT
- If Net VAT > 0 → VAT Payable (remit to NRS)
- If Net VAT < 0 → VAT Credit (carry forward to next month)
For bank statement uploads, TaxStreem divides the transaction amount by 1.075 to extract the revenue and VAT components — unless the business is zero-rated or exempt.