Please note
Belmadeng is an independent study platform and is not affiliated with the FIRS / Nigeria Revenue Service (NRS). This is general information, not tax or legal advice — for your situation consult a qualified tax professional. From 1 January 2026 the Federal Inland Revenue Service (FIRS) became the Nigeria Revenue Service (NRS); use only the official portals (nrs.gov.ng and taxpromax.gov.ng), and confirm current rates and rules there.
The VAT rate
Nigeria’s VAT rate remains 7.5% under the Nigeria Tax Act. Registered businesses charge 7.5% on taxable supplies and remit it to the NRS.
Who must register
Businesses making taxable supplies generally must register for VAT, though the reform raised relief for small businesses — check the current turnover threshold and exemptions for your situation (this is where a small business should confirm carefully).
How to register
- Ensure your TIN is active.
- Register for VAT on TaxProMax (taxpromax.gov.ng).
- Start issuing VAT-compliant invoices from your effective registration date.
How to file
VAT is generally filed monthly on TaxProMax — you report output VAT (charged) and input VAT (paid), and remit the difference. File on time to avoid penalties.
New exemptions
The 2026 reform introduced/expanded VAT exemptions for essentials such as food, healthcare and education, easing the burden on basic goods and services. Confirm the current exempt list on the NRS portal.
Tips
- Confirm whether you must register given your turnover.
- Issue compliant invoices from day one.
- File monthly, on time.
7.5% rate and the ₦50m threshold
Value Added Tax remains at 7.5% under the reform — proposed increases were dropped. What changed is the registration threshold: it has been raised (reported at around ₦50 million in annual turnover). Broadly, if your turnover is below the threshold, you generally don't register for, charge, or file VAT; if you're above it, you must register, charge VAT and file. Because thresholds and rules can be revised and details matter, treat figures as indicative and confirm your position on the official NRS portal or with a tax adviser.
A meaningful improvement for VAT-registered businesses: the reform broadens input-VAT recovery. Where the law was previously unclear, businesses can now generally claim input VAT on goods, services and capital (fixed) assets tied to their taxable supplies — reducing the net VAT cost of investing in the business. This makes registering (once you're above the threshold) less punishing than before, since the VAT you pay on legitimate business inputs can be set against the VAT you collect. Keep proper invoices and records, as they're the basis for any input-VAT claim.
Zero-rated and exempt items
The reform expanded the list of items that carry no VAT to protect households. Broadly, essentials such as basic food items, educational materials, pharmaceuticals/medical supplies and electricity transmission are treated as zero-rated (0% charged to the customer, with sellers able to recover related input VAT) or exempt. The practical upshot: many everyday essentials shouldn't attract VAT. If you sell such items, understand whether they're zero-rated or exempt (the treatment differs for your input-VAT recovery), and confirm the current classifications on the official guidance.
Frequently asked questions
What is the VAT rate in Nigeria in 2026?
7.5% — unchanged under the Nigeria Tax Act.
Who must register for VAT?
Businesses making taxable supplies generally must register, though the reform increased relief for small businesses — confirm the current threshold and exemptions for your case.
How do I register for VAT?
Ensure your TIN is active, then register for VAT on TaxProMax (taxpromax.gov.ng) and issue VAT-compliant invoices from your effective date.
How often do I file VAT?
VAT is generally filed monthly on TaxProMax — report output and input VAT and remit the difference.
What is exempt from VAT now?
The 2026 reform introduced/expanded exemptions for essentials such as food, healthcare and education — confirm the current list on the NRS portal.
What is the VAT rate in Nigeria?
VAT remains at 7.5% under the 2026 reform — proposed increases were dropped. What changed is the registration threshold (raised to a reported ~₦50 million turnover) and broader input-VAT recovery. Confirm current figures on the official NRS portal.
Do I have to register for VAT?
It depends on turnover: broadly, below the registration threshold (reported around ₦50 million) you generally don't register for, charge, or file VAT; above it you must register, charge VAT and file. Treat the figure as indicative and confirm your position on the official NRS portal or with a tax adviser.
Can I claim input VAT?
Yes — the reform broadens input-VAT recovery, so VAT-registered businesses can generally claim input VAT on goods, services and capital (fixed) assets tied to their taxable supplies, reducing the net VAT cost of investing. Keep proper invoices and records as the basis for claims.
What items are VAT-free in Nigeria?
The reform expanded the no-VAT list to protect households — broadly, essentials like basic food items, educational materials, pharmaceuticals/medical supplies and electricity transmission are zero-rated or exempt. If you sell such items, check whether they're zero-rated or exempt (the input-VAT treatment differs) on official guidance.
What's the difference between zero-rated and exempt VAT?
With zero-rated supplies you charge customers 0% but can still recover related input VAT; with exempt supplies you don't charge VAT and generally can't recover input VAT on them. The distinction matters for your input-VAT recovery, so confirm the current classification of your items.