Nigeria's VAT rate is 7.5%. To add VAT, multiply the price by 0.075 and add it: ₦100,000 becomes ₦107,500. To remove VAT from a total, divide by 1.075. Type your amount below and the calculator does both, and you can change the rate if a different one applies.
How the VAT Calculator works
- Choose "Add VAT" if your price does not include VAT yet, or "Remove VAT" if it does.
- Enter the amount in Naira.
- The rate is set to 7.5%. Change it only if your adviser tells you a different rate applies.
- Read the VAT, the price before VAT and the total with VAT, then share the result or make a VAT invoice.
Worked example
A printing business quotes ₦250,000 for a job and needs to add VAT.
VAT: ₦250,000 × 7.5% = ₦18,750
Total to charge: ₦268,750
On the invoice, show ₦250,000 as the price, ₦18,750 as VAT and ₦268,750 as the total.
Common mistakes to avoid
- Adding 7.5% to a price that already includes VAT, so the customer pays VAT twice
- Taking 7.5% off a VAT-inclusive total to "remove" VAT: the right way is to divide by 1.075
- Charging VAT on exempt items such as many basic foods and medicines
Need a different calculator?
Who charges VAT in Nigeria
Businesses that sell VATable goods and services charge VAT on top of their price and pay it to the Nigeria Revenue Service (formerly FIRS). Some items are exempt or zero-rated, for example many basic food items, medical products and services, and school books and tuition. Small businesses are generally not required to charge VAT, so check with a tax adviser whether you must register before you start adding it.
Showing VAT on your invoice
Customers who are VAT-registered can claim back the VAT you charge them, but only if your invoice shows it clearly. Write the price before VAT, the VAT amount and the total on separate lines, with your TIN. The free VAT invoice maker on PaperlessNaija does this layout for you.
Frequently asked questions
How do I calculate 7.5% VAT?
Multiply the price before VAT by 0.075. For ₦40,000, VAT is ₦3,000 and the total is ₦43,000.
How do I remove VAT from a total?
Divide the total by 1.075 to get the price before VAT. The difference is the VAT. ₦107,500 ÷ 1.075 = ₦100,000.
Are these the latest tax rules?
They follow the Nigeria Tax Act 2025, which took effect on 1 January 2026, and were last checked on the date shown on this page. Tax rules can change, so confirm big decisions with a tax adviser or the Nigeria Revenue Service.
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