Estimate Nigerian VAT on local supplies, imported goods or non-resident services. The form separates supplier payment from VAT remitted by the recipient. Import values always exclude Nigerian VAT, even when a previous local calculation used an inclusive price.

Formula

VAT = taxable value × 7.5%; an inclusive price is divided by 1.075. Import value includes import price, non-VAT duties and additional costs to entry. Withholding changes who remits the tax, not the total VAT liability.

Examples

Goods import

Price ₦100,000, duties ₦10,000 and additional costs to entry ₦5,000 give a VAT base of ₦115,000 and VAT of ₦8,625, before any qualifying proof of prior collection.

A PRACTICAL GUIDE

When to use this calculator

This calculator helps separate Nigerian VAT from an inclusive price and distinguish domestic invoices, import valuation and recipient remittance. Those situations may use the same headline rate while producing different supplier payments or taxable values, so selecting the transaction type is essential.

Information to prepare

Confirm whether the supplier's collection exemption is actually available before selecting it. For imports, prepare the import price, duties and relevant costs to entry. Recipient remittance needs its own conditions; it should not be applied simply because the customer would prefer to pay the supplier less.

How to interpret the result

The tax base is the value to which the selected transaction treatment applies. An inclusive total already contains tax and requires a reverse calculation to recover its net value. These amounts are not interchangeable. Tax charged on an invoice, tax withheld by a customer and eligible input-tax credit describe different obligations. Subtracting two amounts in a cash breakdown does not establish that they have the same legal treatment. Check what each output represents before using it in an invoice or budget.

A practical comparison

When reviewing an invoice, compare the VAT liability and the amount paid to each party separately. A recipient's duty to remit VAT does not erase the tax on the transaction. Personal income tax on earnings is handled by the income-tax calculator rather than by changing the VAT base.

Check your calculation step by step

  1. Match the figures to the selected period and use NGN for monetary inputs. If you start with a document in another currency or covering several periods, resolve that difference before entering a combined amount.
  2. Calculate the documented case first. Then change one input at a time to compare scenarios. Keep the original values available so a change in the result can be traced to a particular assumption rather than several simultaneous edits.
  3. Read the component breakdown alongside the formula and examples below. If an official document differs, check the date, base, rounding and omitted concepts before changing a rate or treating the difference as an error.

Continue with a related calculation

These tools cover other questions in Nigeria. Choose the one that matches the amount you want to check:

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    Nigeria 2026 personal income tax with progressive bands, rent relief, documented deductions and a correctly limited minimum-wage exemption.

If you are comparing countries

Open the relevant jurisdiction when comparing a move, an offer or a transaction abroad. Each tool uses its own currency, period and scope; its result should not be substituted into the current calculation.

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Frequently asked questions

What is the standard rate?

7.5%. Zero-rated and exempt categories require the specific conditions in the Act. Basic food, medical supplies and qualifying tuition are among zero-rated categories; oil and gas exports use their separate exemption.

What small-business threshold does the form use?

The official National Assembly copy of the Nigeria Tax Administration Act, section 147, defines the VAT small-business category using turnover no greater than ₦100 million and fixed assets no greater than ₦250 million, excluding professional services. The form also checks petroleum operations and voluntary opt-in. This is a VAT collection test, not a company-income-tax calculation.

Does small-business status remove import VAT?

The form does not extend the domestic supplier collection exemption to imported goods. Import VAT uses its own valuation and exemption rules.

What if VAT was collected by an online platform?

For goods, section 150(8) prevents a second VAT charge at clearance when the qualifying digital-platform import has accepted proof of VAT collected by NRS or an appointed collector. For non-resident services, appointed collection is distinguished from the recipient obligation to remit.

Is VAT withholding the same as income-tax withholding?

No. This form only allocates VAT payments. Government or appointed withholding and recipient self-accounting apply only where the relevant legal obligation or direction exists.

CHECK THE REFERENCES

Official sources