Nigeria VAT Calculator: 7.5% on Invoices, Input VAT and Net VAT Due
Nigerian manufacturers invoice in naira, import in dollars and file VAT monthly, so small arithmetic errors become audit queries. This calculator handles the usual cases: stripping 7.5% from a VAT-inclusive price, adding it to a net price, and netting output VAT against recoverable input VAT.
Your numbers
Nigeria's standard VAT rate is 7.5% since February 2020.
Goods, services and assets bought with a valid VAT invoice.
Lower this where inputs relate to exempt supplies.
Optional: see what a VAT-inclusive price means before VAT.
Your results
Nigerian tax law has changed in recent years. Confirm current rules on input VAT recovery, exemptions and filing with the tax authority or your adviser.
Check your ERP VAT coding
Optional: we review customer and vendor tax codes and show how to report VAT by code.
Optional. The tool and every export work without this. No spam.
How to use it
Enter taxable sales before VAT and any zero-rated export sales. Then enter purchases that carried VAT and the share you can recover. The tool computes output VAT, recoverable input VAT and the net figure due, and shows the same result as a share of taxable sales so you can spot an unusual month. The inclusive price box is a quick helper for invoices: type a gross figure and read the VAT inside it.
- Use net figures for sales and purchases.
- Keep exports separate; they are zero-rated, not exempt.
- Lower the recoverable slider where inputs serve exempt supplies.
The method
VAT is charged on the value of a taxable supply at the rate of 7.5%. To remove VAT from a gross price, divide by 1.075. Net VAT due is output VAT minus allowable input VAT. Zero-rated supplies such as exports still allow input VAT recovery, which is why separating them from exempt supplies matters. Rules on which inputs qualify have been widened under recent reforms, so verify the position for services and fixed assets.
Reading results and ERP notes
A persistent credit position often means exports are high or purchases are front-loaded. Compare the output with the VAT control account in your ERP and with the invoices issued in the month. Check that each customer and vendor record carries the right tax code, because wrong codes are the most common reason a return does not tie to the ledger.
- Reconcile sales VAT to the control account monthly.
- Keep valid supplier VAT invoices with the supplier TIN.
- Review import VAT and withholding tax separately.
Common mistakes
Teams often apply 7.5% to an amount that already includes VAT, treat exports as exempt, or claim input VAT without a compliant invoice. Another is confusing VAT with withholding tax, which is a separate deduction at payment. Filing is monthly, so late submission and under-declaration both attract penalties. Check the current due date with the authority.
Frequently Asked Questions
What is the VAT rate in Nigeria?
The standard rate is 7.5%, in force since February 2020. Some goods and services are exempt or zero-rated. Confirm how your product is treated, since reforms have changed several rules.
How do I calculate VAT from a VAT-inclusive price in Nigeria?
Divide the inclusive price by 1.075 to get the price before VAT, then subtract to find the VAT amount. For example, NGN 107,500 inclusive is NGN 100,000 plus NGN 7,500 VAT.
Are exports subject to VAT in Nigeria?
Exports are generally zero-rated, which means no output VAT is charged but you can still recover related input VAT. Keep export documents to support the treatment.
Is this the same as withholding tax?
No. VAT is charged on supplies and netted on the return. Withholding tax is deducted at payment on certain transactions and remitted separately. See the withholding tax worksheet for that.
Netray can add a read-only report in your ERP that totals output and input VAT by tax code each month, so this calculator becomes a cross-check rather than a data-entry step.
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