Nigeria VAT calculator
Add or remove Nigeria VAT at the rates in force.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
Official source: Federal Inland Revenue Service (FIRS) ↗
In short
- What it calculates
- Add or remove Nigeria VAT at the rates in force.
- Formula used
Add: total = net × (1 + rate ÷ 100)- Example
- A product priced ₦1,000 before tax, at the standard 7.5 % rate:
Nigeria VAT calculator
In Nigeria the indirect tax on consumption is VAT (Value Added Tax), with a standard rate of 7.5%.
Nigeria raised its VAT from 5% to 7.5% in 2020 and still has one of the lowest rates in Africa. Basic food, pharmaceuticals, books and educational and medical services are exempt, and small businesses below a turnover threshold need not register.
This calculator works both ways: it adds the tax to a price without it and also breaks it out of a final price.
How it works
Enter the amount, choose whether to add or remove the tax and pick the rate. The rates available in Nigeria are: standard 7.5 % and zero-rated 0 %.
If you need a rate other than those listed, choose “other rate” and type it in.
Formula
Add: total = net × (1 + rate ÷ 100)
Remove: net = total ÷ (1 + rate ÷ 100)
Tax = total − net
Worked example
A product priced ₦1,000 before tax, at the standard 7.5 % rate:
VAT amount: ₦75
Final price: ₦1,075
The other way round, starting from ₦1,075 tax included, the base is ₦1,000 again.
Explanation
One of Africa's lowest rates
Nigeria raised VAT from 5% to 7.5% in 2020 and remains well below the African average, where rates of 15% to 18% are common. It is a deliberate choice in an economy with a broad tax base but low incomes.
Registration threshold
Businesses below a set annual turnover are not required to register or charge VAT. The measure leaves much of the informal trade and many microbusinesses outside the system.
What is exempt
Basic food, pharmaceutical and medical products, books and educational materials, education and medical services, and certain agricultural produce. Exports are zero-rated.
Withholding at source
Certain payers — government bodies, oil companies and large corporates — withhold the VAT at the moment of payment and remit it directly to the FIRS. The supplier receives the net amount and offsets the withheld sum in its return.
Frequently asked questions
Which VAT rates apply in Nigeria?
The rates built into the calculator are: standard 7.5 % and zero-rated 0 %. Which one applies to a given product or service is set by Nigeria legislation; if in doubt, check with la Federal Inland Revenue Service (FIRS).
How do I remove VAT from a final price?
Choose the option to remove the tax and the calculator divides the final price by one plus the rate. Subtracting the percentage from the final price gives the wrong answer.
How often is Nigerian VAT filed?
Monthly, by the 21st day of the month following the transaction.
Must foreign companies register?
Those supplying digital services to Nigerian consumers may be required to register and collect the tax under FIRS rules.
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