Nigerian VAT under the Nigeria Tax Act 2025
VAT in Nigeria is 7.5% under section 147 of the Nigeria Tax Act 2025, in force since 1 January 2026, which replaced the VAT Act. Services exported to non-residents outside Nigeria are zero-rated under section 186. Monthly VAT returns are due by the 21st day of the following month.
Last reviewed 10 November 2026 by ReckonOS research (source check; not yet reviewed by an accountant).
Estimates based on the rules for Nigeria as of 10 November 2026. Check with your accountant. Each section below links to the official source it is based on, with the date we checked it. This page is research, not tax advice.
The rate and the new law
Section 147 of the Nigeria Tax Act 2025 says VAT shall be charged on the value of all taxable supplies at the rate of 7.5%. The Act commenced on 1 January 2026 and repealed the Value Added Tax Act (section 195(j)); the rate is unchanged.
Sources: Nigeria Tax Act, 2025 (National Assembly copy) (opens in a new tab) (checked 5 November 2026).
Exported services are zero-rated
Section 186(o) charges exported services at zero percent. Section 201 defines an exported service as one rendered to a non-resident person outside Nigeria, regardless of where it is rendered, but not to the Nigerian permanent establishment of a non-resident.
Sources: Nigeria Tax Act, 2025 (National Assembly copy) (opens in a new tab) (checked 5 November 2026).
What a VAT invoice must show
Section 152(1) lists the contents of a VAT invoice, including the supplier’s tax ID, a sequential invoice number, the supplier’s business registration number and the VAT charged with its rate. The tax service may direct businesses to use electronic invoices with at least 30 days’ notice (section 152(4)).
Sources: Nigeria Tax Act, 2025 (National Assembly copy) (opens in a new tab) (checked 5 November 2026).
Returns and small businesses
Section 22(1) of the Nigeria Tax Administration Act 2025 requires VAT returns on or before the 21st day of the following month. A small business, defined as gross turnover of ₦100,000,000 or less a year with fixed assets of no more than ₦250,000,000, is exempt from the monthly return, but a business providing professional services is not classed as small.
Sources: Nigeria Tax Administration Act, 2025 (National Assembly copy) (opens in a new tab) (checked 5 November 2026).
What ReckonOS does with these rules
- Adds VAT at 7.5% to invoices for Nigerian clients and zero-rates services exported to clients outside Nigeria, with a warning about permanent establishments.
- Records withholding tax against each payment as the client’s withholding certificate states; it does not apply a WHT rate or file anything.
- Invoices in naira (₦) and takes payment through your own Paystack or Flutterwave account as well as Stripe and PayPal.
- Does not connect to the NRS e-invoicing system or file VAT returns.
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Questions
What is the VAT rate in Nigeria in 2026?
7.5%, under section 147 of the Nigeria Tax Act 2025, in force from 1 January 2026.
Do I charge VAT to a client outside Nigeria?
Services rendered to a non-resident person outside Nigeria are exported services and zero-rated under section 186, unless the client is the Nigerian permanent establishment of a non-resident. Check with your accountant.
See the tax to set aside from every payment.
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