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VAT Calculator Nigeria — 7.5%

Calculate Value Added Tax on any invoice or purchase instantly. Add 7.5% VAT to a price, or work backwards from a VAT-inclusive total — aligned with FIRS guidelines.

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7.5% VAT

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Understanding VAT

Everything Nigerian business owners need to know about VAT

VAT (Value Added Tax) is a consumption tax charged at each stage of the supply chain. As a business, you collect VAT from your customers (output VAT) and pay VAT to your suppliers (input VAT). You remit only the difference to FIRS.

The current rate of 7.5% was introduced by the Finance Act 2019 and has been in force since February 2020. Before that, the rate was 5% for many years.

If you're VAT-registered, every invoice you issue to a client must clearly show the VAT amount as a separate line item — not bundled into the price. This allows your client to claim input VAT credits.

Example: ₦500,000 invoice

Service fee₦500,000.00

VAT (7.5%)₦37,500.00

Total payable₦537,500.00

Note: The ₦37,500 VAT must be shown separately on your invoice and remitted to FIRS by the 21st of the following month.

FAQs

VAT questions Nigerian business owners ask

Common questions about VAT registration, rates, filing, and compliance — answered plainly.

What is the current VAT rate in Nigeria?

The standard VAT rate in Nigeria is 7.5%, introduced by the Finance Act 2019 effective February 1, 2020. Before that, the rate was 5%. There is currently no proposal to change it in the 2026 Tax Reform Act.

When must a Nigerian business register for VAT?

You must register for VAT with FIRS when your annual taxable turnover reaches or exceeds ₦25 million. Businesses below this threshold are exempt but may register voluntarily to claim input VAT credits on purchases.

What is the difference between zero-rated and VAT exempt?

Zero-rated supplies are within the VAT system but taxed at 0% — you can still claim input VAT on related purchases. Exempt supplies are outside the VAT system entirely — no VAT is charged, but you also cannot claim input VAT on costs related to those supplies.

What happens if I don't charge VAT when I should?

Failure to charge VAT when required is a serious FIRS offence. You can be assessed for the VAT that should have been charged (plus penalties and interest) — even if you didn't collect it from your customer. FIRS can audit up to 6 years of past filings.

Can I claim back VAT I paid on business expenses?

Yes. As a VAT-registered business, you can deduct input VAT you paid on business purchases from the output VAT you collected from customers. You only remit the net amount to FIRS each month.

How often do I file and remit VAT to FIRS?

VAT returns and remittance are monthly, due by the 21st of the month following the taxable supply. So if you collected VAT in May, you must file and remit by June 21st. Late filing attracts a ₦50,000 fine for the first month.

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