Nigeria VAT Guide for 2026: Rates, Registration & Filing
Nigeria's VAT rate is 7.5%. Learn registration requirements, the collection rules for nonresident digital suppliers, and monthly filing with the NRS (formerly the FIRS).
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Key Takeaways
Nigeria charges 7.5% VAT on most goods and services [1]. The Nigeria Tax Act 2025, effective 1 January 2026, kept the 7.5% rate, expanded zero-rating for basic food, education, and healthcare items, and broadened input VAT recovery to include services and capital assets [2]. Businesses register with the tax authority for a TIN, small companies below the turnover threshold are relieved from charging VAT, and non-resident suppliers of digital services must register [1][2]. VAT returns are filed monthly, due the 21st of the following month [1]. SaaS, digital services, and clothing are taxable at 7.5%, while basic food items are zero-rated [1][2].
Taxability Snapshot
SaaS
Taxable
Clothing
Taxable
Groceries
Zero-rated
Digital Goods
Taxable
Sales Tax Rates
Nigeria's VAT standard rate is 7.5%, among the lowest in Africa [1]. Despite earlier proposals to raise it, the Nigeria Tax Act 2025 — effective 1 January 2026 — keeps the rate at 7.5% [1][2]. A 0% rate covers exports and many basic items, and some supplies are exempt [1]. From 2026 the tax authority is the Nigeria Revenue Service (NRS), which replaces the FIRS [1][2].
Rate | Applies to |
|---|---|
Standard 7.5% | Most goods, services, digital supplies |
Zero 0% | Exports, basic food, medicines, education items |
Exempt | Oil & gas exports; baby and sanitary products; shared road transport; agricultural equipment leasing; EPZ/FTZ and diplomatic supplies |
Nigeria VAT Calculator
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Nigeria · VATRates as of August 2026. Source: National Assembly: Nigeria Tax Act, 2025 (opens in a new tab).
Nigeria · Standard rate
7.5%
VAT rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Nigeria uses VAT registration rules rather than US-style economic nexus. A business registers for a TIN and VAT with the federal tax authority; under the Nigeria Tax Act 2025, small companies with turnover below the statutory threshold are relieved from charging and filing VAT [2]. Non-resident suppliers of digital, electronic, or telecommunication services to Nigerian customers must register and charge VAT regardless of threshold [1].
Filing frequency & deadlines
VAT returns are filed monthly and are due by the 21st of the month following the period [1]. Non-resident digital suppliers remit VAT collected on Nigerian sales through the NRS [1]. The 2026 reform emphasises digital filing and coordinated enforcement [2].
Exemptions
Exported goods (other than oil and gas), exported services, basic food, medical and pharmaceutical products, medical services, and educational books and materials are zero-rated [1]. VAT-exempt supplies include oil and gas exports, baby products, sanitary products, shared passenger road-transport services, agricultural equipment leasing, and supplies to EPZ/FTZ entities and diplomatic missions [1]. SaaS and digital services supplied to Nigerian customers are taxable at 7.5% [1].
Penalties
Failure to register, file, or remit VAT carries administrative penalties plus interest under the Nigeria Tax Administration Act [1]. Non-resident digital suppliers that fail to comply face enforcement and potential restrictions on serving Nigerian customers [1].
Sources
Verified July 2026 against Federal Inland Revenue Service and the Nigeria Tax Act 2025.
Frequently asked questions
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