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VAT rates in Nigeria

Quick overview

Standard Rate Reduced Rate Other Rates
7.5% N/A Zero-rated (0%) and exempt

The local name for VAT in Nigeria is Value-added tax (VAT).

There is basically 1 VAT rate in Nigeria:

  • Standard VAT rate is 7.5%

Recent developments

For more information about (recent) rate change developments in Nigeria, please click HERE.

Standard rate: 7.5%

This rate applies for all transactions that take place in Nigeria, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Examples of goods and services taxable at 0%, with the right to deduct VAT

  • Goods and services purchased by diplomats
  • Goods and services purchased for humanitarian donor-funded projects

Examples of exempt supplies of goods and services, without the right to deduct VAT

  • All exported goods and services
  • Medical goods and services and pharmaceutical products
  • Basic food items
  • Locally produced sanitary napkins
  • Books and educational materials
  • Petroleum products, renewable energy equipment, gas supplied to electricity generating companies (GENCOs) and electricity distribution companies (DISCOs)
  • Airline transportation tickets, shared passenger road transport services 1364 Nigeria
  • Commercial aircraft, aircraft engines and spare parts
  • Plant, machinery and goods imported for use in free-trade zones
  • Plant, machinery and equipment purchased for the utilization of gas in downstream petroleum operations
  • Tractors, plows and agricultural implements purchased for agricultural purposes
  • Services rendered by unit micro-finance banks and mortgage institutions
  • Plays and performances by educational institutions as part of learning
  • Proceeds from the disposal of short-term federal government of Nigeria securities and bonds
  • Proceeds from the disposal of short-term state, local government and corporate bonds; this xemption will only last 10 years from a commencement date of 2 January 2012

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on February 2, 2024

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