Calculate VAT in Nigeria: Rates, Examples and How It Works

What is VAT in Nigeria and how does it work?

The Value Added Tax or VAT is a tax applied to the sale of goods or services. The VAT is collected throughout the production and distribution chain, ensuring that at the end of it, it is the consumers who pay it.

To determine the VAT you need to consider the sale price of the product or service offered, and also a specific percentage to obtain the final cost of the VAT. The percentage to be charged varies depending on the product or service in question. Similarly, on the social demands that the countries in question face.

The standard percentages are usually imposed on the purchase of general goods and services, while the lower percentages, usually correspond to essential products or food. For example, a smartphone may have a VAT of 7.5%, which would be the standard VAT;

Types of VAT in Nigeria

• General VAT of 7.5%