What is the VAT rate in Nigeria?

The standard rate is 7.5%, raised from 5% in February 2020. Some goods and services are zero-rated or exempt — basic food items, medical and pharmaceutical products, books and educational materials among them.

How do I calculate VAT on a price that already includes it?

Multiply the price by 7.5 and divide by 107.5. A ₦1,075 price contains ₦75 of VAT, leaving ₦1,000 before tax. This is the case most Nigerian retailers are in, because the sticker price is what the customer pays.

How do I add VAT to a price?

Multiply by 0.075 and add it on. ₦1,000 plus 7.5% VAT is ₦1,075. Note that this is not the reverse of the calculation above applied to the same number — 7.5% of ₦1,075 is ₦80.63, which is not the VAT that price contains.

Do I have to register for VAT?

Businesses with an annual turnover of ₦25 million or more are required to register with FIRS and charge VAT. Below that threshold registration is not required, though you may still register voluntarily. Check your own position with your accountant.

When do I remit VAT to FIRS?

VAT returns are filed monthly, on or before the 21st day of the month following the transaction. You remit the VAT you charged, less the input VAT you paid on business purchases.

Should my invoice show VAT separately?

Yes. A VAT invoice should show your TIN, the amount before VAT, the VAT charged, and the total. Showing only a single figure makes it impossible for your customer to reclaim input VAT.

Nigerian VAT calculator. 7.5%, both directions.

Work out the VAT inside a price, or add it on top. The two give different answers, and knowing which one you are in is most of the question.

Amount

VAT rate (%)

Nigeria’s standard rate is 7.5%.

Does that amount already include VAT?

Amount before VAT (net): NGN 0.00
VAT (7.5%): NGN 0.00
Total including VAT (gross): NGN 0.00

Enter an amount to see the split.

This calculator uses Nigeria’s standard VAT rate and is for guidance only. Zero-rated and exempt supplies exist, and your registration position depends on your turnover — confirm both with your accountant or FIRS.

How VAT works in Nigeria

What is the VAT rate in Nigeria?: The standard rate is 7.5%, raised from 5% in February 2020. Some goods and services are zero-rated or exempt — basic food items, medical and pharmaceutical products, books and educational materials among them.
How do I calculate VAT on a price that already includes it?: Multiply the price by 7.5 and divide by 107.5. A ₦1,075 price contains ₦75 of VAT, leaving ₦1,000 before tax. This is the case most Nigerian retailers are in, because the sticker price is what the customer pays.
How do I add VAT to a price?: Multiply by 0.075 and add it on. ₦1,000 plus 7.5% VAT is ₦1,075. Note that this is not the reverse of the calculation above applied to the same number — 7.5% of ₦1,075 is ₦80.63, which is not the VAT that price contains.
Do I have to register for VAT?: Businesses with an annual turnover of ₦25 million or more are required to register with FIRS and charge VAT. Below that threshold registration is not required, though you may still register voluntarily. Check your own position with your accountant.
When do I remit VAT to FIRS?: VAT returns are filed monthly, on or before the 21st day of the month following the transaction. You remit the VAT you charged, less the input VAT you paid on business purchases.
Should my invoice show VAT separately?: Yes. A VAT invoice should show your TIN, the amount before VAT, the VAT charged, and the total. Showing only a single figure makes it impossible for your customer to reclaim input VAT.

Charging VAT is one line. Tracking it is the work.

WadMaster puts VAT on every invoice, keeps the records behind it, and shows you what you have charged over any period.

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