VAT 7.5% in Nigeria: rates, exemptions and returns
The standard rate is 7.5%. Some supplies are zero-rated or exempt, and small businesses may be outside VAT.
Nigeria's standard VAT rate is 7.5%. It was kept under the Nigeria Tax Act 2025, which took effect on 1 January 2026. Exports are zero-rated. Some essentials such as basic food are described as zero-rated, and items like medical services, education and residential rent as exempt. Small businesses under the small company limits are exempt from registering and charging VAT. VAT returns are due on or before the 21st day of the following month. Always check the schedules of the Act or ask your accountant to classify a specific supply.
- Standard rate: 7.5% on taxable goods and services.
- Exports: zero-rated, so input VAT can be recovered.
- Exempt supplies charge no VAT and give no input VAT recovery.
- Return due on or before the 21st of the following month.
How it works
Decide if you must register. Small businesses with turnover of NGN 100 million or less and fixed assets not above NGN 250 million are exempt from VAT registration and charging VAT, and may opt in. Confirm the current limits with NRS.
Classify each supply as standard-rated, zero-rated or exempt. Zero-rated supplies are taxable at 0%. Exempt supplies are outside VAT.
Show the VAT rate and amount on the invoice line by line, together with the seller and buyer details and the total.
Submit the VAT return by the 21st of the following month, even if no activity took place, and pay any VAT due.
Under the new law, input VAT on services and fixed assets can generally be claimed, subject to valid invoices. Keep your invoices for audit.
Legal framework
- Nigeria Tax Act 2025 (VAT provisions, in force 1 January 2026).
- Nigeria Tax Administration Act 2025 (VAT returns).
- Nigeria Revenue Service (Establishment) Act 2025.
Frequently asked questions
Is Nigerian VAT still 7.5% in 2026?
Yes. Proposals to raise the rate were not adopted in the Nigeria Tax Act 2025, and the standard rate stays at 7.5%.
What is the difference between zero-rated and exempt?
Zero-rated supplies are taxable at 0%, so the supplier can recover input VAT. Exempt supplies are outside VAT and the supplier cannot recover related input VAT.
When is the VAT return due?
On or before the 21st day of the following month, whether or not an economic activity took place.
Does 4invoices choose the VAT rate for me?
No. You enter the VAT rate on each invoice line yourself. 4invoices does not classify supplies, file returns or check the rules for you.
Does 4invoices connect to NRS or the Merchant Buyer Solution?
No. 4invoices creates invoices with a VAT or tax rate per line, supports any currency with an exchange rate, and lets you download a PDF. It does not connect to the tax authority, does not clear or validate invoices, does not issue an Invoice Reference Number and does not file returns. If you must use MBS, use an approved Access Point Provider or system integrator.