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 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
Exempt
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 January 1, 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 |
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]. Registration steps are in the How to Register section.
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 emphasizes 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.
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