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Legal basis: calculations follow the Nigeria Tax Act 2025 and Tax Administration Act 2025. See the tax law library.
Value Added Tax (VAT) is a consumption tax charged on most goods and services supplied in Nigeria. It is administered by the Federal Inland Revenue Service (FIRS). The current VAT rate is 7.5%.
Basic food items, medical/pharmaceutical goods, educational books, baby products, agricultural inputs and exports are VAT-exempt.
Businesses with taxable turnover of ₦25 million or more per year must register for VAT and file monthly returns.
VAT in Nigeria is 7.5%, applied to the value of most taxable goods and services.
₦100,000 × 7.5% = ₦7,500 VAT. The VAT-inclusive price is ₦107,500.
Divide the gross by 1.075 to get the net amount, then subtract to find the VAT portion. Example: ₦107,500 ÷ 1.075 = ₦100,000 net, ₦7,500 VAT.
Businesses with annual taxable turnover below ₦25 million are exempt from charging and filing VAT under current Nigerian law.
VAT returns and payments are due on or before the 21st of the month following the transaction month.
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