VAT · 6 min read · Updated 13 October 2026
VAT in Nigeria for 2026: rate, registration threshold and monthly returns
Value added tax remains at 7.5% under the Nigeria Tax Act 2025. What matters most for businesses is getting the treatment of each invoice right and filing every month on time.
Rate and threshold
The standard VAT rate is 7.5%. Registration and filing obligations arise once annual taxable turnover reaches ₦100,000,000. Businesses below the threshold should keep monitoring turnover so they register when they cross it.
Standard, zero-rated and exempt
Each sale falls into one of three treatments:
- Standard-rated — VAT charged at 7.5%.
- Zero-rated — VAT charged at 0%, but related input VAT can still be recovered.
- Exempt — no VAT charged, and related input VAT is generally not recoverable.
Input VAT and the monthly return
Output VAT on sales less allowable input VAT on purchases gives the net VAT payable (or a credit). Keep valid invoices showing the supplier's TIN for every input VAT claim.
VAT returns are filed monthly. Check the current due date in the ActivEdge Tax Calendar, and confirm it on the NRS portal before filing.
This guide is general information under the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025, not tax advice. Confirm current rules with NRS or a qualified adviser.
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