VAT Calculator Nigeria 2026

Calculate Value Added Tax (VAT) on taxable goods and services in Nigeria using the current 7.5% VAT rate.

This guide explains how Nigemmrian VAT is calculated, how input and output VAT work, and what businesses should understand about VAT under the Nigeria Tax Act 2025 and the 2026 tax regime.

What Is VAT in Nigeria?

Value Added Tax is a consumption tax charged on taxable supplies of goods and services.

Under the Nigeria Tax Act 2025, VAT is charged at 7.5% on the value of taxable supplies, subject to the Act's exemptions, zero-rating provisions and other rules.

For a straightforward taxable sale:

VAT = Taxable Value × 7.5%

For example, if a taxable service costs ₦100,000 before VAT:

₦100,000 × 7.5% = ₦7,500 VAT

The customer's total invoice would therefore be:

₦107,500

The calculation becomes slightly different when the quoted price already includes VAT.

How to Calculate VAT From a VAT Inclusive Price

Sometimes a business quotes a price that already includes VAT.

For example, suppose the total amount paid by a customer is ₦107,500, including VAT.

You cannot simply take 7.5% of ₦107,500.

Instead:

VAT = VAT-inclusive amount × 7.5 ÷ 107.5

So:

₦107,500 × 7.5 ÷ 107.5 = ₦7,500 VAT

The underlying taxable value is therefore ₦100,000.

This distinction is important when reviewing invoices, contracts or payments where the wording says that the agreed price is "VAT inclusive."

Output VAT vs Input VAT

One of the most important concepts in VAT is the difference between output VAT and input VAT.

Output VAT

Output VAT is the VAT you charge on your taxable supplies.

For example:

You sell taxable goods worth ₦1,000,000.
VAT at 7.5% = ₦75,000 output VAT.

Input VAT

Input VAT is VAT paid on qualifying purchases or expenses.

For example:

Your business purchases qualifying inputs and pays ₦30,000 VAT.

That ₦30,000 may form part of the input VAT available for credit, subject to the conditions and restrictions in the Act.

VAT payable

The basic relationship is:

VAT payable = Output VAT − allowable Input VAT

Using the example above:

₦75,000 − ₦30,000 = ₦45,000

So the amount of VAT payable is not necessarily the same as the total VAT collected from customers.

The Nigeria Tax Act provides for input-tax credits against output VAT, subject to the statutory rules.

Not Everything Is Simply "7.5%"

This is where many basic VAT calculators become misleading.

The standard rate is 7.5%, but the tax treatment of a transaction depends on what is being supplied and the circumstances of the supply.

The NTA contains specific categories of:

• Taxable supplies

• Zero-rated supplies

• Exempt goods

• Exempt services

• Special rules for certain transactions

A zero-rated supply is not the same thing as an exempt supply.

This distinction matters because zero-rating and exemption can have different consequences for input VAT and recovery.

For this reason, you should not assume that every product or service sold by a Nigerian business automatically attracts 7.5% VAT.

What Is a Zero-Rated Supply?

A zero-rated supply is subject to VAT at 0%.

That is different from being outside the VAT system altogether.

The NTA's schedules identify specific goods and services that receive zero-rating or exemption.

Examples of supplies receiving specific VAT treatment include certain basic food items, medical and educational supplies and qualifying exports, among others. The exact statutory conditions should be checked before treating a transaction as zero-rated.

This is one reason a VAT calculator should be viewed as a calculation tool rather than a substitute for determining whether a particular transaction is taxable in the first place.

Small Businesses and VAT

The 2026 VAT rules also contain specific provisions for small businesses.

Importantly, this should not be simplified to:

"Small businesses don't pay VAT."

The Nigeria Tax Administration Act provides an exemption from the monthly VAT-return requirement for a small business, while allowing a small business to opt out of the exemption by written notice to the Service. The Act also contains rules concerning what happens when a business ceases to qualify as a small business.

This distinction matters because VAT registration, charging VAT, filing returns and the definition of a small business are related but not necessarily identical questions.

If your business is close to the applicable threshold or your circumstances are unusual, it is worth checking the current statutory requirements rather than relying on a simplified online calculator.

When Is VAT Due?

For businesses subject to the monthly VAT return requirement, VAT returns contain information about the previous month's taxable supplies, including input VAT, output VAT and VAT payable.

The general filing deadline is the 21st day of the following month, subject to the specific rules and exemptions applicable to the taxpayer.

For example:

VAT transactions occurring in January are generally dealt with in the February VAT return, with the applicable deadline falling on 21 February.

Small businesses benefit from the statutory exemption from monthly VAT returns described above unless they opt out or cease to qualify.

VAT Invoices and Record Keeping

VAT isn't only a calculation exercise.

Businesses also need reliable records showing what was sold, what was purchased and how VAT was treated.

The Tax Administration framework requires businesses to maintain accurate transaction records, and the Act provides specific requirements around VAT invoicing and reporting.

Good records make it easier to answer questions such as:

• How much VAT did we charge?

• How much qualifying input VAT did we incur?

• Which transactions were zero-rated?

• Which transactions were exempt?

• How much VAT remains payable?

• Can we explain the figures reported in our return?

This is where VAT becomes closely connected with ordinary financial record keeping.

A Simple VAT Example

Imagine a business has the following transactions during a period:

Taxable sales

₦2,000,000

Output VAT

₦2,000,000 × 7.5% = ₦150,000

Qualifying purchases

₦800,000

Input VAT

₦800,000 × 7.5% = ₦60,000

Subject to the applicable input-tax rules:

VAT payable

₦150,000 − ₦60,000 = ₦90,000

The important point is that the business does not simply remit every naira of VAT appearing on its sales invoices. The calculation considers the applicable input VAT credit as well.

VAT and Your Financial Records

VAT is one example of why financial records are useful for more than tax filing.

A single sale can contribute to:

• Revenue

• Cash flow

• VAT

• Customer balances

• Profitability

• Management reporting

Likewise, a purchase can affect:

• Expenses

• Inventory

• Cash flow

• Input VAT

• Cost of goods sold

When these transactions are recorded properly, the same underlying information can support multiple calculations and reports.

That is the approach we have taken with TaxMateNG.

How TaxMateNG Fits In

TaxMateNG is an independent financial-record and tax calculation application.

It is not affiliated with the Nigerian government and is not a government VAT filing portal.

The application can help users structure financial records and perform supported tax calculations using the rules implemented in its calculation engine.

The purpose is not to replace the underlying tax legislation.

It is to make the information easier to organize and the resulting calculations easier to understand.

For important or unusual transactions, users should verify the applicable tax treatment against the current law or consult a qualified tax professional.

VAT Calculator Nigeria — Important Disclaimer

This page provides general information about Nigerian VAT and is not tax, legal or accounting advice.

VAT treatment can depend on the nature of the supply, taxpayer status, transaction structure, exemptions, zero-rating provisions and other conditions in the Nigeria Tax Act 2025 and related legislation.

For significant transactions or uncertain VAT positions, consult a qualified Nigerian tax professional.

TaxMateNG does not submit VAT returns directly to the government.

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