How vat / sales tax works in Nigeria
Nigerian VAT defaults to 7.5% on domestic supplies, with output tax charged, input tax credited, and monthly returns filed by the 21st.
Registration follows NGN 25 million of taxable turnover with voluntary entry below, while exports and defined essentials zero-rate.
Financial, health, education, and agricultural supplies are largely exempt, and e-invoicing validates every transaction.
Tax rates at a glance
- Standard VAT
- 7.5%
- Zero-rated supplies
- 0%
- Exempt supplies
- Exempt
- Registration line
- NGN 25m
- Filing rhythm
- Monthly
- E-invoicing
- Validated
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersSaaS foundersExpatsCross-border traders
Watch out for
- Tax-reform cycles move thresholds and mechanics regularly, so prior-year parameters mislead systematically.
- Digital-service collection pulls non-resident vendors into duties from qualifying B2C sales.
- Exempt supplies block input recovery without a reduced band to blame, repricing mixed health and finance work.
- Withholding VAT on defined transactions redirects remittance to counterparties, changing cash-flow modelling.
Frequently asked questions
What is the VAT rate in Nigeria?
Nigeria applies 7.5% standard VAT in 2026, retained through reform cycles, with zero-rating for exports and exemptions for finance, health, and education.
How often are Nigerian VAT returns filed?
Monthly by the 21st, with e-invoicing validating every transaction behind the return.
When must a Nigerian business register for VAT?
Past NGN 25 million of taxable turnover, with voluntary registration below. Digital sellers follow dedicated collection tracks.