FIRS

Value Added Tax (VAT)

VAT is governed by Value Added Tax Act Cap V1, LFN 2004 (as amended)

  • VAT is a consumption tax paid when goods are purchased and services rendered
  • It is a multi-stage tax
  • VAT is borne by the final consumer
  • All goods and services (produced within or imported into the country) are taxable except those specifically exempted by the VAT Act
  • VAT is charged at a rate of 7.5%
  • Some goods and services such as non-oil exports are zero rated
  • All taxable persons are required to file VAT monthly returns not later than 21st day following the month of transaction

Under the Nigerian VAT regime, three groups of taxpayers are obligated to deduct VAT at source and remit directly to the tax authority. These are:

  1. Nigerian companies that are carrying on VATable transactions with non-resident companies within the country; 
  2. Government ministries, statutory bodies and other agencies of government; and
  3. Companies operating in the oil and gas sector.

     Download VAT-FORM