SalesPalVAT calculator Nigeria (7.5%)
Add VAT to a price, or find the VAT inside a price that already includes it. Works in Naira at Nigeria's 7.5% rate.
How to calculate VAT in Nigeria
Nigeria's standard VAT rate is 7.5%.
- Adding VAT: multiply the price by 0.075 to get the VAT, or by 1.075 to get the total. ₦10,000 × 1.075 = ₦10,750 (₦750 VAT).
- Removing VAT from a price that already includes it: divide by 1.075. ₦10,750 ÷ 1.075 = ₦10,000, so the VAT inside is ₦750.
A common mistake: taking 7.5% off a VAT-inclusive price. 7.5% of ₦10,750 is ₦806, not ₦750. Always divide by 1.075 to remove VAT.
Do I need to charge VAT?
Not every business has to. Small businesses below the turnover threshold in the tax law are generally not required to charge VAT, and some goods and services are exempt or zero-rated (for example many basic food items, medical products and educational materials). The rules were updated in the 2025 tax reforms, so confirm your position with the Nigeria Revenue Service (formerly FIRS) or an accountant.
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Try SalesPal freeFrequently asked questions
What is the VAT rate in Nigeria?
The standard VAT rate in Nigeria is 7.5%.
How do I add 7.5% VAT to a price?
Multiply the price by 1.075. For example, ₦20,000 × 1.075 = ₦21,500, which includes ₦1,500 VAT.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.075. For example, ₦21,500 ÷ 1.075 = ₦20,000, so the VAT is ₦1,500.
Does every business in Nigeria have to charge VAT?
No. Small businesses below the turnover threshold set in the tax law are generally not required to, and some goods and services are exempt or zero-rated. Confirm with the Nigeria Revenue Service or an accountant.