Nigeria imposes Value Added Tax (VAT) at a standard rate of 7.5% on most goods and services supplied within the country, as well as on most imports. The rate was increased from 5% to 7.5% under the Finance Act 2020, effective 1 February 2020, making it one of the key revenue reforms introduced by the federal government to broaden the tax base.
This calculator lets you work in either direction: Add VAT (net price to gross price) or Remove VAT (gross price back to net price), with an instant breakdown of net amount, VAT element, and total. It is powered entirely by your browser — no figures are uploaded or stored anywhere.
How the calculation works
VAT is a consumption tax levied at each stage of the supply chain, but ultimately borne by the end consumer. Registered businesses collect VAT on behalf of the Federal Inland Revenue Service (FIRS) and can typically reclaim the VAT they have paid on their own inputs (input tax credit).
Adding VAT (net to gross):
Gross = Net × 1.075 VAT = Net × 0.075
Removing VAT (gross to net):
Net = Gross ÷ 1.075 VAT = Gross − Net
The divisor 1.075 comes from treating the gross as 107.5% of the net — dividing by it isolates the base 100%.
Worked example
A Lagos-based electronics retailer sells a laptop. The wholesale (net) cost is ₦250,000.
| Line | Amount |
|---|---|
| Net price (excl. VAT) | ₦250,000.00 |
| VAT at 7.5% | ₦18,750.00 |
| Gross price (incl. VAT) | ₦268,750.00 |
A customer who buys the laptop for ₦268,750 and wants to know how much VAT they paid uses Remove VAT mode: ₦268,750 ÷ 1.075 = ₦250,000 net, with ₦18,750 as the tax element.
Nigeria VAT rate reference table
| Rate | Category | Examples |
|---|---|---|
| 7.5% | Standard rate | Electronics, clothing, restaurant meals, alcohol, professional services, telecom, fuel, vehicles, most imports |
| 0% | Zero-rated exports | Goods and services physically exported from Nigeria |
| 0% | Exempt — basic food | Unprocessed staple foodstuffs: yam, rice, beans, vegetables, fruits, unprocessed meat and fish |
| 0% | Exempt — medical | Medicines, medical devices, baby products (diapers, baby food) |
| 0% | Exempt — education | Textbooks, exercise books, educational equipment, tuition fees |
| 0% | Exempt — agriculture | Farm machinery, fertilisers, pesticides, veterinary medicines |
Source: Value Added Tax Act (Cap V1 LFN 2004) as amended by the Finance Act 2020; Federal Inland Revenue Service (FIRS) guidance, 2025.
VAT registration threshold
Businesses with annual turnover above ₦25 million are required to register for VAT with the FIRS. Micro and small enterprises below this threshold may still register voluntarily. Once registered, a business must file VAT returns monthly and remit the net VAT collected (output tax minus input tax credit) to the FIRS by the 21st day of the month following the tax period.
Practical notes for Nigerian businesses
VAT invoices must show the supplier’s Tax Identification Number (TIN), the VAT amount separately, and the buyer’s TIN for business-to-business transactions where the buyer intends to claim input tax credit. The FIRS e-VAT platform allows online filing and payment. Non-resident digital services companies supplying to Nigerian consumers are also required to register and account for VAT under the Finance Act 2021 amendments.
All figures in this calculator are in Nigerian naira (NGN, symbol ₦). Rates are current as of 2025. This tool is for guidance only and does not constitute professional tax or legal advice.