Advertise with us - Reach Finance savvy people

Nigerian VAT Calculator

Calculate Value Added Tax (VAT) at the current Nigerian rate of 7.5%. Get instant, accurate calculations for your business transactions.

Nigerian VAT Calculator (Standard Rate)

What is VAT in Nigeria?

Value Added Tax (VAT) is a consumption tax levied on the value of all taxable supplies in Nigeria. The standard rate for VAT is currently 7.5%. This rate applies to most goods and services unless specifically exempted or zero-rated under the Nigeria Tax Act, 2025.

Who Must Register for VAT?

Businesses making taxable supplies in Nigeria are required to comply with VAT regulations. Non-resident persons making taxable supplies to Nigeria are also required to register for tax and include VAT on their invoices, ensuring compliance with Nigerian tax laws.

Key Facts About Nigerian VAT

Standard VAT rate: 7.5% on taxable goods and services
VAT is charged on the value of goods and services at each stage of production
Certain goods and services are VAT-exempt under Section 186 of the Nigeria Tax Act
Some supplies are zero-rated (0% VAT) under Section 187 of the Nigeria Tax Act

VAT-Exempt Goods and Services (Section 186)

According to the Nigeria Tax Act, 2025, the following supplies are exempt from VAT:

  • -Oil and gas exports
  • -Crude petroleum oil and feed gas
  • -Goods for humanitarian donor-funded projects
  • -Baby products
  • -Locally manufactured sanitary towels, pads, or tampons
  • -Military hardware, arms, and uniforms (for security agencies)
  • -Shared passenger road-transport service
  • -Purchase, hire, rental, or lease of agricultural equipment (tractors, ploughs)
  • -Supplies consumed in export processing or free trade zones
  • -Goods or services supplied to diplomatic missions or diplomats
  • -Plays and performances by educational institutions (as part of learning)
  • -Land or buildings, including interest therein
  • -Money or securities, including interest therein
  • -Government licences
  • -Assistive devices and disability-related products (hearing aids, wheelchairs, braille materials)

Zero-Rated Goods and Services (Section 187)

The Nigeria Tax Act, 2025 specifies that the following taxable supplies are charged at a 0% VAT rate:

  • -Basic food items
  • -All medical and pharmaceutical products, including medicinal herbal products
  • -Educational books and materials
  • -Fertilisers
  • -Locally produced agricultural chemicals, veterinary medicine, and animal feeds
  • -Live cattle, goats, sheep, and poultry
  • -Agricultural seeds and seedlings
  • -Medical services
  • -Electricity generated and supplied to National Grid or NBET
  • -Electricity transmitted by TCN to DISCOs
  • -Tuition relating to nursery, primary, secondary, or tertiary education
  • -Exported goods (excluding oil and gas)
  • -Exported services
  • -Exported incorporeal property
  • -Medical equipment
  • -Electric vehicles and their parts/semi-knock-down units for assembly

VAT-Exempt vs. Zero-Rated: What's the Difference?

VAT-Exempt

No VAT is charged on the supply, and the supplier cannot claim input VAT on related purchases. This may increase costs for businesses dealing in exempt goods.

Zero-Rated

VAT is charged at 0%, but the supplier can still claim input VAT on related purchases. This is more favorable for businesses as it allows for VAT recovery.

Other Tax Calculators

Personal Income Tax

Calculate PAYE tax

Company Income Tax

Calculate corporate tax

Withholding Tax

Calculate WHT rates

Important Disclaimer:

This VAT calculator provides estimates based on the standard 7.5% rate. The lists of VAT-exempt and zero-rated goods and services are based on Sections 186 and 187 of the Nigeria Tax Act, 2025. Actual VAT obligations may vary based on specific circumstances and interpretations of the law. Please consult with a qualified tax professional for advice specific to your situation.