Standard 7.5%, zero-rated food from Jan 2026, exempt healthcare, education, transport. Calculate VAT-inclusive price, VAT-exclusive price, VAT amount, and reverse VAT extraction.
The standard VAT rate in Nigeria is 7.5%. This applies to most goods and services. From January 2026, certain food items including grains, vegetables, fruits, meat, and eggs are zero-rated.
Zero-rated items (0% VAT, effective Jan 2026) include unprocessed food: grains, vegetables, fruits, meat, poultry, fish, eggs, and dairy. Processed foods remain subject to 7.5% VAT.
Exempt services include: healthcare and medical services, education and training, domestic passenger transport, financial services (banking, insurance), and agricultural services. These do not charge VAT.
To extract VAT from a total amount (reverse VAT): Divide the total by 1.075 to get the net, then subtract net from total to get VAT amount. This calculator does this automatically when you select "Remove VAT" mode.
VAT-registered businesses collect VAT from customers and remit to FIRS. Filing frequency depends on annual turnover: large businesses file monthly, smaller businesses file quarterly. Non-registered businesses cannot charge VAT.
Businesses with annual turnover of ₦25 million or more are required to register for VAT with FIRS. Those below the threshold can voluntarily register. Registration is done through the FIRS portal (taxes.firs.gov.ng).
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