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.
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 '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.
Input VAT — the VAT you pay on your own business purchases — can be deducted from the VAT you collect from customers, lowering what you remit to the NRS. Since 1 January 2026, NTA 2025 §156(5) allows this for goods, services, and fixed assets alike; before then, only goods qualified, and VAT on services or equipment had to be absorbed as a cost instead. Three conditions apply: your business must be VAT-registered, you need a valid VAT invoice for the purchase, and you must claim within five years of the tax period the purchase falls in. There's no exclusion list — as long as a purchase is for your taxable business activity, it qualifies the same as any other.
For example: on 15 February 2026, a VAT-registered consultancy buys a laptop for the business: ₦500,000 plus ₦37,500 VAT (7.5%), paid to a supplier who issues a valid VAT invoice. Before 1 January 2026, that ₦37,500 would not have been claimable as input VAT — a fixed asset purchase would have had the VAT absorbed into its capitalized cost instead. Under NTA 2025 §156(5), because the laptop is a fixed asset bought for the business's taxable activity, the full ₦37,500 counts as input VAT: it's included in the "Input VAT" total the business enters for that filing period's Net payable calculation, and the claim stays valid for five years from that period.
File your VAT return with the NRS (via Rev360) by the 21st of the following month.
Work out VAT on a real invoice — single line or itemized — with TaxLane's VAT calculator.
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.
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.
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.
No — for guidance only, not tax advice.