- Nigeria’s new VAT rules under the Nigeria Tax Act, 2025, effective from January 1, 2026, expand input VAT deductions to include services and fixed assets related to taxable supplies.
- The list of VAT-exempt and zero-rated goods and services has been broadened, covering essential items like oil and gas exports, assistive devices, basic food, education materials, medical services, electric vehicles, and agricultural products.
- A 5% surcharge is introduced on fossil fuel items, with exemptions for clean/renewable energy, household kerosene, compressed natural gas, and cooking gas.
- VAT deductions are disallowed for expenses where VAT or import duties were not properly charged or paid, affecting eligibility for capital allowances.
- An electronic invoicing system and revised compliance requirements have been introduced, with the standard VAT rate remaining at 7.5%.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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