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Nigeria VAT Calculator

Add or remove 7.5% Value Added Tax from a price, switching between VAT-exclusive and VAT-inclusive amounts.

Published

Written by PennyCompass Team

Add or remove 7.5% VAT from any price.

VAT amount

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Net (exclusive)

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Gross (inclusive)

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Worked example

Take a net price of N100,000 and add VAT at the 7.5% standard rate. Multiply N100,000 by 0.075 to get N7,500 of VAT, so the gross VAT-inclusive price is N107,500. Working the other way, if a customer is quoted N107,500 inclusive and you need the VAT element, multiply the gross by 7.5 divided by 107.5. That gives the same N7,500, and the net falls back to N100,000. The arithmetic is symmetric, so the calculator can move in either direction without changing the underlying VAT figure.

StepAmount (NGN)
Net price100,000
VAT at 7.5%7,500
Gross (inclusive)107,500
VAT fraction to extract7.5 / 107.5
Gross price N107,500 Net N100,000 Net N100,000 is roughly 93% of the gross. VAT N7,500 7.5% of the net, or 1 in 14.33 of the gross price.

How it is calculated

Nigerian VAT is a flat 7.5% standard rate under the Nigeria Tax Act 2025, and proposed increases to 10 or 15% did not pass into the Act, so 7.5% holds for 2026. To add VAT to a net figure you multiply by 1.075, and the VAT itself is just the net times 0.075. To strip VAT out of a VAT-inclusive price you multiply the gross by 7.5 divided by 107.5, because the gross already contains both the net and the tax. Exports and certain basic items are zero-rated, meaning VAT applies at 0% rather than being exempt. Small businesses below the small-company turnover threshold are not obliged to charge or collect VAT.

Frequently asked questions

What is the VAT rate in Nigeria?
The standard rate of Value Added Tax in Nigeria is 7.5 percent. Proposed increases to 10 or 15 percent did not pass into the Nigeria Tax Act 2025, so 7.5 percent remains in force for 2026. To add VAT, multiply the net price by 1.075. To extract VAT from a VAT-inclusive price, multiply the gross by 7.5 divided by 107.5.
How do I extract VAT from a VAT-inclusive price in Nigeria?
Multiply the gross price by 7.5 and divide by 107.5. This gives the VAT element directly, and the net is the gross minus that figure. For example, a gross price of NGN 107,500 contains NGN 7,500 of VAT and a net of NGN 100,000. The fraction 7.5 over 107.5 works because the gross already embeds both the net and the 7.5 percent tax.
Are any goods or services exempt from VAT in Nigeria?
Yes. Exports are zero-rated under the Nigeria Tax Act, meaning VAT is charged at 0 percent rather than being exempt. Certain basic goods and services are also exempt or zero-rated, including some foodstuffs, medical supplies, and educational materials. Small businesses below the turnover threshold for VAT registration are not required to charge or collect VAT on their sales.
Who is required to register for VAT in Nigeria?
Businesses with taxable turnover above the prescribed threshold are required to register with the Federal Inland Revenue Service and charge VAT. The threshold is set in the tax legislation and has been subject to revision under the 2025 reform, so confirm the current figure with the FIRS, now being reorganised as the Nigeria Revenue Service, before assuming registration is or is not required.

Related calculators

VAT Registration

Threshold to charge VAT.

Input VAT Recovery

Net output against input.

Sources

  1. FIRS — Personal Income Tax (PAYE), Federal Inland Revenue Service, Nigeria
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