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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.

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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.

Frequently Asked Questions

How do I calculate 7.5% VAT in Nigeria?

To add 7.5% VAT to a price: multiply the pre-tax amount by 1.075. Example: ₦100,000 × 1.075 = ₦107,500 (VAT-inclusive total; VAT = ₦7,500). To extract VAT from a VAT-inclusive amount: divide by 1.075, then subtract. Example: ₦107,500 ÷ 1.075 = ₦100,000 (net); VAT = ₦7,500. To find VAT from a net amount only: multiply by 0.075. Example: ₦100,000 × 0.075 = ₦7,500. Use the free VAT calculator above to compute any of these instantly.

Who pays VAT in Nigeria — the buyer or the seller?

The buyer bears the economic cost of VAT, while the seller (registered supplier) acts as a collection agent for FIRS. The supplier adds 7.5% VAT to the invoice, collects it from the buyer, and remits it to FIRS by the 21st of the following month. VAT-registered businesses can recover the VAT they paid on their own purchases (input VAT) by offsetting it against the VAT they collected from customers (output VAT), remitting only the net difference to FIRS.

What is the current VAT rate in Nigeria?

The standard VAT rate in Nigeria is 7.5%, introduced by the Finance Act 2019 and maintained under the Nigeria Tax Act, 2025. This rate applies to most goods and services supplied in Nigeria unless they are specifically exempt or zero-rated under the Act. There is no VAT on zero-rated supplies (0%) and no VAT at all on exempt supplies.

Which goods and services are exempt from VAT in Nigeria?

VAT-exempt supplies under the Nigeria Tax Act, 2025 (Section 186) include: oil and gas exports; crude petroleum oil and feed gas; baby products; locally manufactured sanitary pads and tampons; military hardware and uniforms for security agencies; shared passenger road transport; land or buildings (and interests therein); money and securities; government licences; goods for diplomatic missions; and goods for humanitarian donor-funded projects. Exempt suppliers cannot claim input VAT credit on related costs.

What are zero-rated VAT supplies in Nigeria?

Zero-rated supplies (Section 187) are taxed at 0% VAT — meaning no VAT is charged to the buyer, but suppliers can still claim back input VAT on related costs. In Nigeria, zero-rated supplies include: basic food items (e.g. rice, beans, yam, vegetables); medical and pharmaceutical products; educational books and tuition; medical equipment; exported goods and services; live cattle, sheep, and poultry; fertilisers and agricultural seeds; and electric vehicles. Zero-rating is more beneficial for businesses than a full exemption because input VAT is still recoverable.

Who must register for VAT in Nigeria?

Any person (individual or company) who makes taxable supplies in Nigeria with an annual turnover of ₦25 million or more must register for VAT with FIRS. Businesses below this threshold may register voluntarily. Non-resident companies supplying digital or electronic services to Nigerian consumers are also required to register for VAT and include it on their invoices.

What are the penalties for VAT non-compliance in Nigeria?

Failure to register for VAT attracts a penalty of ₦50,000 for the first month and ₦25,000 for each subsequent month of default. Late filing or remittance attracts a penalty of 10% of the VAT due plus interest at the CBN minimum rediscount rate. Issuing invoices without VAT where required, or making fraudulent input VAT claims, can result in additional penalties and prosecution under the Nigeria Tax Administration Act, 2025.