VAT Calculator (Nigeria 7.5%)
Add or remove Nigeria's 7.5% VAT from any price. Also supports custom VAT rates for other countries. Shows full breakdown instantly.
vat-calculator.tool
Custom:
%
ⓘ Nigeria VAT rate is 7.5% as set by the Finance Act 2019. The standard VAT threshold for mandatory registration is ₦25 million annual turnover.
Nigeria VAT — 7.5% Since 2020
Nigeria's Value Added Tax (VAT) rate was increased from 5% to 7.5% by the Finance Act 2019, effective from February 2020. VAT applies to most goods and services sold in Nigeria, with exemptions for basic food items, medical and pharmaceutical products, educational materials, and exported services.
VAT Registration Threshold
Businesses with annual taxable turnover above ₦25 million are required to register for VAT and charge it on taxable supplies. Businesses below this threshold are exempt from registration but may still choose to register voluntarily. VAT collected must be remitted to the Federal Inland Revenue Service (FIRS) monthly.
Frequently Asked Questions
Nigeria's current VAT rate is 7.5%, introduced by the Finance Act 2019 and effective from 1 February 2020. This replaced the previous flat rate of 5% that had been in place since 1993. There are ongoing discussions about potential future increases but 7.5% is the rate as of 2026.
Exempt items include: basic food items (bread, cereals, cooking oils, milk, eggs), medical and pharmaceutical products, books and educational materials, baby products, exported goods and services, and agricultural equipment. The full list is in the VAT Act and subsequent Finance Acts.
Divide the VAT-inclusive price by 1.075 (for 7.5% VAT). Example: ₦107,500 inclusive price ÷ 1.075 = ₦100,000 exclusive price. The VAT portion is ₦107,500 - ₦100,000 = ₦7,500. Use the Remove VAT mode in this calculator.
Registration is mandatory when annual taxable turnover exceeds ₦25 million. Registration is done with the Federal Inland Revenue Service (FIRS). Registered businesses must file monthly VAT returns and remit collected VAT by the 21st of the following month.
Yes — VAT applies to services as well as goods, unless specifically exempted. Professional services, telecommunications, hospitality, and most service businesses are subject to VAT. Exported services may be zero-rated, meaning VAT is charged at 0% rather than being exempt (the distinction affects input VAT recovery).