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Business / Consumers

VAT Calculator

Instantly calculate Value Added Tax (7.5%) for goods and services in Nigeria. Support for both inclusive and exclusive calculations.

Calculation Mode

Exclusive: VAT is added ON TOP of the amount.

Amount Details

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Enter an amount to see the instant breakdown.
7.5% VAT applied automatically.

Nigeria VAT Calculator (2025 Act Update)

Value Added Tax (VAT) is a consumption tax paid on goods and services. The standard rate is 7.5%. The Finance Act 2025 has introduced major changes, particularly in Input VAT recovery (allowing you to claim back more) and digital service taxation.

How to Use

  • Add VAT (Exclusive): Enter your net price. We add 7.5% (e.g., ₦10,000 becomes ₦10,750). Use this for invoicing.
  • Extract VAT (Inclusive): Enter the total amount paid. We strip out the tax component.

What changed in 2025?

  • Input VAT: You can now claim input VAT on overheads and assets, not just inventory. This is a huge win for businesses.
  • Digital Services: Non-resident digital companies (like streaming or cloud services) must charge VAT.
  • Threshold: Only businesses with ₦50m+ turnover must register.

Need to calculate salary taxes? Try our PAYE Calculator or check the Tax Glossary.

Frequently Asked Questions (2025 Update)

The Finance Act 2025 sets the VAT registration threshold at ₦50 million turnover per annum. Businesses earning below this are not required to charge VAT.
Yes! A major 2025 reform is the expanded Input VAT recovery. Businesses can now claim input tax on operating costs and capital expenditure, not just on stock for resale.
Essential items such as basic food (bread, cereals, fish), educational materials, and healthcare services are zero-rated. This means you pay 0% VAT on them.
Yes. The Act has expanded the scope to include all transactions connected to Nigeria, including digital services provided by non-resident companies.
Failure to file VAT returns by the 21st of the following month attracts strict penalties. With new e-invoicing rules, compliance is automatically tracked.
Generally, residential rent is VAT-exempt. The 2025 Act maintains the exemption for residential accommodation.