← Back to Guides

VAT for small businesses: when do you need to register and charge it

3 min read

Whether VAT registration is required for your business is an NRS determination, not something TaxLane's calculators track — confirm your status with the NRS or a tax professional. Once you are charging VAT (registered or otherwise), here's the rate, how to calculate it, and when to file.

The rate

Nigeria's VAT rate is 7.5%, unchanged under the 2026 tax reform.

How to calculate it

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.

Selling multiple line items on one invoice

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.

Filing what you've charged

File your VAT return with the NRS (via Rev360) by the 21st of the following month.

Put this into practice

Work out VAT on a real invoice — single line or itemized — with TaxLane's VAT calculator.

Frequently asked questions

Can I calculate VAT on an amount that already includes VAT?

Yes — switch to 'Inclusive' mode and TaxLane backs out the net and VAT portions from a gross figure instead.

Can I calculate VAT across multiple invoice line items at once?

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.

When do I need to file VAT?

File your VAT return with the NRS (via Rev360) by the 21st of the following month.

Do I have to charge VAT if my business is small?

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.

Is everything charged 7.5% VAT?

No — basic food, medicine, education, exports, and several other categories are zero-rated or exempt under NTA 2025 §§186-187.

Is this official tax advice?

No — for guidance only, not tax advice.