VATupdate

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

  • Non-oil exports
  • Goods and services purchased by diplomats
  • Goods and services purchased for humanitarian donor-funded projects
  • Imports of commercial aircraft, aircraft spare parts and machinery and equipment used in the solid minerals sector

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

  • All exported goods and services (aside from non-oil exports)
  • Medical goods and services and pharmaceutical products
  • Basic food items
  • Locally produced sanitary napkins
  • Books and educational materials
  • 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 community 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 exemption 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 October 4, 2021.

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