Nigeria VAT Calculator
How Much Is VAT in Nigeria?
The standard VAT rate in Nigeria is 7.5% in 2026. Other rates: 0% — Basic food items, medical and pharmaceutical products, educational materials, exports, electricity supplied to the grid (Nigeria Tax Act 2025). Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate Nigeria VAT
To add 7.5% VAT to a net (tax-exclusive) price, multiply it by 1.075. To remove VAT from a gross (tax-inclusive) price, divide it by 1.075.
- Add VAT: NGN 100 net × 1.075 = NGN 107.50 gross (that is NGN 7.50 of VAT)
- Remove VAT: NGN 107.50 gross ÷ 1.075 = NGN 100 net (that is NGN 7.50 of VAT)
Use the Nigeria VAT calculator above for any amount, or compare Nigeria with every other country in our VAT rates by country table.
Nigeria VAT Rates Overview
Every VAT rate currently in force in Nigeria
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 7.5% | Most goods and services, including imports and digital services |
| Zero rate | 0% | Basic food items, medical and pharmaceutical products, educational materials, exports, electricity supplied to the grid (Nigeria Tax Act 2025) |
VAT History and Local Rules in Nigeria
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: Nigeria Tax Act 2025 took effect on 1 January 2026, repealing the VAT Act, expanding zero rating and input VAT recovery; FIRS replaced by the Nigeria Revenue Service
- 2021: Finance Act 2020 brought non-resident digital suppliers into VAT from 2021
- 2020: Rate raised from 5% to 7.5% on 1 February 2020 (Finance Act 2019)
- 1993: VAT introduced at 5% by Decree No. 102 of 1993, replacing sales tax
Is the VAT rate the same everywhere in Nigeria?
VAT is a federal tax charged at the same 7.5% throughout Nigeria. Supplies to entities in Export Processing Zones and Free Trade Zones receive VAT relief.
Good to know
From 1 January 2026 the Nigeria Tax Act 2025 replaced the VAT Act. The rate stayed at 7.5%, but many essentials (basic food, medical products, educational materials) moved from exempt to zero-rated, and businesses can now recover input VAT on fixed assets and services, not just goods for resale.
Excess input VAT refunds must be claimed within 12 months and the NRS is required to process them within 30 days.
VAT is levied federally and the revenue is shared between the federal, state and local governments; some states have litigated over the right to levy their own consumption taxes.
Zero-Rated and Exempt Supplies in Nigeria
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Basic food items
- Medical and pharmaceutical products and medical equipment
- Educational books and materials
- Exports of goods and services
- Electricity supplied to the national grid
- Supplies to Export Processing Zone and Free Trade Zone entities
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Goods for humanitarian projects
- Assistive devices for persons with disabilities
Nigeria VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Nigeria.
| Local name | Value Added Tax (VAT) |
|---|---|
| VAT number format | Tax Identification Number (TIN) issued by the tax authority |
| Registration threshold | Taxable persons must register with the Nigeria Revenue Service; small businesses with turnover of NGN 100 million or less and fixed assets under NGN 250 million (not providing professional services) are relieved from charging VAT |
| Non-resident businesses | Non-resident suppliers of taxable goods and services to Nigeria, including digital services, must register and charge VAT; digital platforms collect VAT on underlying supplies |
| Filing frequency | Monthly VAT return |
| Filing and payment deadline | 21st day of the following month (Nigeria Tax Administration Act 2025) |
| E-invoicing / reporting | The Nigeria Tax Act requires a fiscalisation system with e-invoicing and real-time validation through the NRS Merchant Buyer Solution, being rolled out in phases starting with large taxpayers |
| Tax authority | Nigeria Revenue Service (NRS), formerly FIRS |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Nigeria Revenue Service (NRS), formerly FIRS before relying on them.
Cross-Border Sales and Refunds in Nigeria
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Non-resident suppliers of digital services to Nigerian customers must register with the NRS and charge 7.5% VAT, and digital platforms must collect VAT on the full value of supplies made through them.
Tourist VAT refunds: No tourist VAT refund scheme.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇿🇦 South Africa
Standard Rate: 15%
🇪🇬 Egypt
Standard Rate: 14%
Frequently Asked Questions
Common questions about VAT in Nigeria
What is the current VAT rate in Nigeria?
The standard VAT rate in Nigeria is 7.5% in 2026. Other rates in force: 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Nigeria?
To add 7.5% VAT, multiply the net price by 1.075. To remove it from a VAT-inclusive price, divide by 1.075; the difference is the VAT. The calculator at the top of this page does both.
What changed in Nigerian VAT under the 2025 tax reform?
The Nigeria Tax Act replaced the VAT Act from 2026, moved many essentials from exempt to zero-rated, allowed input VAT recovery on assets and services, required e-invoicing and fiscalisation, and FIRS became the Nigeria Revenue Service.
Do small businesses have to charge VAT in Nigeria?
Small businesses with annual turnover of NGN 100 million or less and fixed assets under NGN 250 million are relieved from charging VAT and filing monthly returns, unless they provide professional services.
Who needs to register for VAT in Nigeria?
Registration threshold: Taxable persons must register with the Nigeria Revenue Service; small businesses with turnover of NGN 100 million or less and fixed assets under NGN 250 million (not providing professional services) are relieved from charging VAT. Foreign businesses: Non-resident suppliers of taxable goods and services to Nigeria, including digital services, must register and charge VAT; digital platforms collect VAT on underlying supplies.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.