How to calculate VAT in Nigeria
The standard VAT rate is 7.5%. If a taxable service costs ₦200,000 before VAT, multiply ₦200,000 by 0.075. The VAT is ₦15,000 and the customer pays ₦215,000 in total.
Formula for adding VAT
VAT = amount before VAT × 0.075
Total including VAT = amount before VAT × 1.075
Formula for extracting VAT
If a price already includes VAT, divide the total by 1.075.
For a VAT-inclusive total of ₦215,000:
- Amount before VAT: ₦215,000 ÷ 1.075 = ₦200,000
- VAT portion: ₦215,000 minus ₦200,000 = ₦15,000
How VAT should appear on an invoice
Show the taxable subtotal, VAT rate, VAT amount and total separately. This makes the calculation easy for the customer to check.
Only charge VAT after confirming that your business has an obligation to collect it and that the supply is taxable. This calculator provides a mathematical result, not individual tax advice.
Next steps
Read the VAT invoice format guide, see a complete sample invoice, or create an invoice with VAT calculated automatically.
Frequently asked questions
What is the current VAT rate in Nigeria?
The standard VAT rate under the Nigeria Tax Act 2025 is 7.5% for taxable supplies.
How do I add VAT to a price?
Multiply the price before VAT by 0.075, then add the result to the original price.
How do I remove VAT from a VAT-inclusive amount?
Divide the VAT-inclusive amount by 1.075 to find the amount before VAT. Subtract that figure from the total to find the VAT portion.