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

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 TaxPro Max) by the 21st of the following month.

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 TaxPro Max) by the 21st of the following month.

Is this official tax advice?

No — for guidance only, not tax advice.