Nigeria's VAT rate is 7.5%, unchanged under the 2026 tax reform.
To find VAT on an amount that excludes VAT, multiply by 7.5% and add the result to the original amount for the gross total. To back VAT out of an amount that already includes it, divide by 1.075 to get the net amount, then subtract the net from the gross to see the VAT portion.
Yes — switch to 'Inclusive' mode and TaxLane backs out the net and VAT portions from a gross figure instead.
Yes — switch to 'Itemized invoice' mode to add line items with a quantity and unit price each, then see a running net, VAT, and grand-total breakdown you can save or export as a PDF or CSV.
Yes — switch to 'Net payable' mode and enter your total output VAT (collected from customers) and input VAT (what you paid on your own business purchases) for the period; TaxLane subtracts one from the other and tells you whether you owe NRS or carry a credit. See what counts as input VAT in TaxLane's guide to claiming input VAT.
Under NTA 2025 §156(5), input VAT on goods, services, and fixed assets you buy for your business all count — effective 1 January 2026, this was expanded from goods only. Three conditions apply: your business must be VAT-registered, you need a valid VAT invoice, and you must claim within five years of the purchase's tax period. There's no exclusion list for specific purchase types.
File your VAT return with the NRS (via Rev360) by the 21st of the following month.
Not necessarily. Under NTAA §22(4)/§147, a small business — gross turnover at or below ₦50,000,000.00/year and fixed assets below ₦250,000,000.00, excluding professional-services businesses — is VAT-exempt. Check your own status with the VAT calculator's exemption checker above.
No — basic food, medicine, education, exports, and several other categories are zero-rated or exempt under NTA 2025 §§186-187. See the full list in TaxLane's guide to VAT-exempt and zero-rated items.
A taxable person who fails to process a taxable supply through the fiscalisation system faces an administrative penalty of ₦200,000, plus 100% of the tax due on that transaction, plus interest at the prevailing CBN Monetary Policy Rate (NTAA §104). This penalty falls on the non-compliant business itself — TaxLane hasn’t found a confirmed rule that a customer loses their own input-VAT credit for receiving a non-compliant invoice, despite that claim circulating elsewhere; we won’t state it as fact until it’s confirmed.
Yes, it's free with no account needed. Calculations run on your device and are never sent to a server — except the optional voice-input feature on amount fields, which sends your speech to your browser's own speech-recognition service to convert it to text.
No — for guidance only, not tax advice.
Sourced from the Nigeria Tax Act 2025 — see full citations →
Not sure when you need to register for VAT and start charging it? Read the guide.