# VAT calculator Nigeria 2026 — add or remove 7.5% VAT

Source page: https://valem.run/calculators/nigeria/vat

Nigeria charges VAT at 7.5% of the value of taxable goods and services; basic food, medicines, education and exports are zero-rated, land and financial instruments are exempt, and a small business — turnover of ₦100 million or less and fixed assets of at most ₦250 million, not providing professional services — neither registers for nor charges VAT.

**Tax year:** 2026

## How it is calculated

Section 147 of the **Nigeria Tax Act 2025**, in force from 1 January 2026, charges VAT on the value of all taxable supplies at **7.5%**. Section 186 charges **0%** on basic food items, medical and pharmaceutical products and medical services, educational books and tuition, fertilisers and other farm inputs, and exported goods and services. Section 185 **exempts** land and buildings, money and securities, shared passenger road transport, baby products and others.

So ₦100,000 of taxable goods carries **₦7,500** of VAT. To take VAT out of a price, divide by 1.075: ₦107,500 is ₦100,000 plus ₦7,500. Where a non-resident supplies your business without charging VAT, you withhold and remit it yourself (s.150(2)); a consumer has no such duty, and none arises where the supplier is registered or an appointed collector has collected it (s.150(1), (3)–(4)).

Under section 22 of the **Nigeria Tax Administration Act 2025**, a **small business** — turnover of ₦100 million or less and fixed assets of at most ₦250 million — is exempt from registering, charging VAT and filing returns, unless it opts in; a business providing professional services never counts as one. It still needs a Tax ID (NTAA s.4), and capital-asset and business sales do not count towards its turnover (s.22(7), not modelled). Others file monthly by the 21st. VAT withheld by government bodies, the suspended items of the Eleventh Schedule and import VAT are not modelled. Estimate, not tax advice.

## Worked example

With Amount of 100,000, this model computes VAT charged of 7,500 NGN.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `amount` | Amount (₦) | number |
| `direction` | This amount is | string |
| `category` | What is being supplied | string |
| `reverseCharge` | Your business bought from a non-resident that did not charge VAT (s.150(2)) | boolean |
| `annualTurnover` | Your annual turnover (₦) | number |
| `fixedAssets` | Your total fixed assets (₦) | number |
| `professionalServices` | The business provides professional services | boolean |

## Sources

- [Nigeria Tax Act 2025 (Act No. 7, in force 1 Jan 2026) ss.147, 185, 186: 7.5%, exempt, 0%](https://nass.gov.ng/documents/download/11249) (checked 2026-11-01)
- [Nigeria Tax Administration Act 2025 ss.22(4)-(5), 147: small business ₦100m / ₦250m](https://nass.gov.ng/documents/download/11250) (checked 2026-11-01)

## What this page claims

The Valem engine reproduces this model's formula through 9 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/nigeria/vat.json
- Compute by URL: https://valem.run/calculators/nigeria/vat.json?amount=100000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `nigeria/vat`)