# Nigeria VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/africa/nigeria
Published: June 17, 2026

Nigeria's VAT rate is 7.5%. Learn registration requirements, the collection rules for nonresident digital suppliers, and monthly filing with the FIRS.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

## 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

## 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

- [1] [Federal Inland Revenue Service — Value Added Tax (7.5%, digital services, monthly filing by the 21st)](https://www.firs.gov.ng/vat)

- [2] [National Assembly of Nigeria — Nigeria Tax Act 2025 (effective 1 January 2026; exemptions and input VAT recovery)](https://nass.gov.ng/documents/download/11250)

- [3] [Federal Inland Revenue Service — TaxPro-Max registration portal](https://taxpromax.firs.gov.ng/)

- [4] [Tax Appeal Tribunal — VAT appeals](https://tat.gov.ng/)

Verified July 2026 against Federal Inland Revenue Service and the Nigeria Tax Act 2025.

## Frequently asked questions

### What is the Nigeria VAT rate in 2026?

7.5%. The Nigeria Tax Act 2025, effective January 1, 2026, kept the rate at 7.5% despite earlier proposals to raise it [1][2].

### What changed under the 2026 tax reform?

The Nigeria Tax Act 2025 took effect January 1, 2026, replacing the FIRS with the Nigeria Revenue Service (NRS) and keeping VAT at 7.5% [2].

### Do foreign digital sellers register for VAT in Nigeria?

Yes. Non-resident suppliers of digital and electronic services to Nigerian customers must register and account for 7.5% VAT [1].

### Is SaaS taxable in Nigeria?

Yes. SaaS and digital services supplied to Nigerian customers are taxable at 7.5% [1].

### When are Nigerian VAT returns due?

VAT is filed monthly and due by the 21st of the month following the tax period [1].

### Who administers VAT in Nigeria in 2026?

The Nigeria Revenue Service (NRS), which replaced the FIRS as the central tax authority under the 2025 reform [1][2].