What is the VAT rate in Nigeria in 2026?

Nigeria's VAT rate is 7.5% in 2026. The Nigeria Tax Act 2025, which took effect on 1 January 2026, kept the standard rate at 7.5%. Basic food and consumables are zero-rated; healthcare, medicines, education, and public road transport are exempt.

How long does FIRS VAT registration take?

After submitting a complete application on TaxPro-Max, FIRS typically reviews and approves within five to fifteen working days. Applications with missing or unclear documents take longer, as FIRS suspends the review until documents are corrected.

What is my VAT number in Nigeria?

Nigeria does not issue a separate VAT registration number. Your Tax Identification Number (TIN) serves as your VAT number once FIRS approves your VAT registration. Your TIN is updated on TaxPro-Max to reflect VAT-registered status and a VAT Certificate is issued.

When is the VAT return due in Nigeria?

Monthly VAT returns must be filed and net VAT remitted to FIRS by the 21st of the month following the return period. For example, the VAT return for January is due by 21 February. Filing late or remitting late attracts penalties under the Nigeria Tax Act 2025.

Are exported services subject to VAT in Nigeria?

No. Exports of goods and services are zero-rated under the Nigeria Tax Act 2025. This means you charge 0% VAT on the supply but can still recover input VAT incurred in making that supply, provided you hold valid documentation.

Can I recover input VAT on all my business purchases?

You can recover input VAT only on purchases used to make taxable (standard-rated or zero-rated) supplies, and only if you hold a valid VAT invoice from a FIRS-registered supplier. Input VAT on purchases related to exempt supplies is not recoverable.

How does KARR help with Nigerian VAT compliance?

KARR automatically applies the correct VAT treatment — 7.5% standard, zero-rated, or exempt — to each transaction as you post it. It prepares your monthly VAT return from one ledger, runs a pre-filing compliance check to flag errors, and generates FIRS-compliant invoices showing VAT separately and your TIN.

How to Register for VAT in Nigeria (2026): A Step-by-Step Guide

Q: Is there a minimum turnover threshold for VAT registration in Nigeria?

No. Unlike corporate income tax — where small companies with turnover of ₦100 million or less and fixed assets of ₦250 million or less are exempt — VAT applies broadly. Any business making taxable supplies must register with FIRS regardless of size.

TL;DR: To register for VAT in Nigeria, you submit your application through the FIRS TaxPro-Max portal using your Tax Identification Number, business documents, and bank details. VAT applies broadly at 7.5% under the Nigeria Tax Act 2025 (effective 1 January 2026), with monthly returns due by the 21st of each month.

Last updated: July 2026

What Is VAT in Nigeria and Who Must Register?

VAT in Nigeria is a consumption tax charged at a flat rate of 7.5% on the supply of taxable goods and services. Under the Nigeria Tax Act 2025, which took effect on 1 January 2026, the standard VAT rate remains 7.5%. Any business supplying taxable goods or services in Nigeria is required to register with the Federal Inland Revenue Service (FIRS) and charge VAT — there is no minimum turnover threshold for VAT registration itself.

The Nigeria Tax Act 2025 continues the broad-base approach to VAT: registration is mandatory for any taxable person making taxable supplies, regardless of revenue size. This differs from corporate income tax, where small companies with turnover of ₦100 million or less and fixed assets of ₦250 million or less are exempt entirely.

What is taxable and what is not?

The 2025 Act updated the VAT treatment of certain supplies:

Standard-rated (7.5%): Most goods and services — professional fees, software, manufactured goods, telecommunications, financial services fees, rent on commercial property.
Zero-rated (0%): Basic food and consumables, exports of goods and services, and goods purchased by diplomats.
Exempt: Healthcare, medicines and pharmaceuticals, education, and public road transport services.

If your business deals in a mix of taxable and exempt supplies, you may only recover input VAT on the taxable portion. Getting this classification right from day one prevents overpayments and penalties.

Documents You Need Before You Start

Before you open the FIRS TaxPro-Max portal, gather every document on this list. Missing a single item causes the application to stall — FIRS reviewers will suspend the request and you restart the clock.

For a limited liability company registered with the Corporate Affairs Commission (CAC):

Certificate of Incorporation (CAC)
CAC Form 1.1 (formerly CAC Form 2 and CAC Form 7) showing directors and shareholders
Memorandum and Articles of Association
Tax Identification Number (TIN) — if you do not yet have a TIN, register first at the Joint Tax Board (JTB) portal (tin.jtb.gov.ng)
Valid means of identification for each director (National ID, international passport, or driver's licence)
Utility bill or tenancy agreement confirming the principal business address (not older than three months)
Company bank account details (account name, number, and bank)
Passport photographs of authorised signatories

For a business name / sole trader:

CAC Business Name Registration Certificate
TIN of the individual owner
Valid ID of the owner
Utility bill confirming business address
Bank account details

Pro tip: Scan all documents to clear, legible PDF files before you start. The TaxPro-Max portal has a file-size limit per upload; keep each file under 2 MB.

Step-by-Step: How to Register for VAT on TaxPro-Max

The entire VAT registration process is now handled through the FIRS TaxPro-Max platform at taxpromax.firs.gov.ng. Here is the exact sequence:

Step 1 — Create or log in to your TaxPro-Max account If your company already has a TIN, your TaxPro-Max account may already exist. Use the TIN as your username and reset the password if needed. New businesses must first complete TIN registration at the JTB portal before accessing TaxPro-Max.

Step 2 — Navigate to Registration From the dashboard, select Registration, then Register for Tax, then choose Value Added Tax (VAT) from the tax type list.

Step 3 — Complete the VAT registration form Fill in:

Business legal name (exactly as on CAC certificate)
Principal place of business address
Nature of business / sector
Date business commenced
Estimated annual turnover
Names and details of directors or proprietors

Step 4 — Upload supporting documents Attach the documents listed in the previous section. Every field marked mandatory must have an upload before you can proceed.

Step 5 — Submit and receive acknowledgement Click Submit. The portal generates an Application Reference Number immediately. Save or print this — you will need it to track your application status.

Step 6 — FIRS review and approval FIRS reviews the application, sometimes conducting a desk or field verification of the business address. Processing typically takes between five and fifteen working days, though this can vary.

Step 7 — Receive your VAT Certificate and TIN update Once approved, your TIN is updated to show VAT registration status and FIRS issues a VAT Certificate. You can download this from your TaxPro-Max dashboard. Your TIN serves as your VAT number in Nigeria — there is no separate VAT registration number issued.

Your Obligations After VAT Registration

Registering is only step one. From the date of registration, you must:

Charge VAT on every taxable supply at 7.5% and show it separately on your invoices.
File a monthly VAT return on TaxPro-Max by the 21st of each following month — for example, the return for January is due by 21 February.
Remit net VAT (output VAT collected minus allowable input VAT) to FIRS with each return.
Keep VAT records — invoices, receipts, and accounts — for at least six years.
Issue VAT invoices that show your TIN, the VAT amount separately, and the date of supply.

Failure to file or remit on time attracts penalties under the Nigeria Tax Act 2025. Maintaining clean, real-time records from the first taxable transaction is far cheaper than reconstructing them later under audit.

Nigeria VAT in a Regional Context

Understanding where Nigeria's 7.5% VAT sits relative to other African markets helps multinationals and investors frame their compliance burden accurately.

Country	Standard VAT Rate	Registration Threshold	Monthly/Periodic Filing
Nigeria	7.5%	No minimum threshold for VAT	Monthly (by 21st)
Ghana	15% VAT + 2.5% NHIL + 2.5% GETFund	GHS 750,000 annual turnover	Monthly
Kenya	16%	KES 5 million in any 12 months	Monthly
South Africa	15%	R1 million compulsory; R50,000 voluntary	Monthly or bi-monthly

Sources: Nigeria Tax Act 2025 (FIRS); VAT Act 2025 Act 1151 (GRA, Ghana); Kenya Revenue Authority; South African Revenue Service. All rates as at July 2026.

Nigeria's 7.5% is the lowest standard VAT rate among these four major African economies, which is relevant for pricing decisions and transfer-pricing analyses involving Nigerian entities.

Corporate Tax vs VAT: Understanding Both Obligations

For many Nigerian business owners, VAT registration coincides with understanding their total tax exposure. The table below summarises the two primary tax obligations under the Nigeria Tax Act 2025.

Tax	Rate	Who Pays	Key Threshold
VAT	7.5% on taxable supplies	Consumers (collected by registered businesses)	No turnover threshold — all taxable supplies
Companies Income Tax (CIT)	30% standard rate	Companies on assessable profits	0% for small companies (turnover ≤₦100m AND fixed assets ≤₦250m)
Development Levy	4% of assessable profits	Larger companies	Applies above the small-company exemption threshold

Note that the old medium-company CIT tier (previously 20%) was removed by the Nigeria Tax Act 2025. The landscape is now: zero for small companies, 30% plus 4% Development Levy for larger ones.

How KARR Handles Nigerian VAT Compliance

KARR is cloud accounting software built for business owners who are not accountants. For Nigerian VAT specifically, KARR applies the correct 7.5% VAT treatment — or zero-rate or exempt status — automatically as you post each transaction, based on the supply type. You do not need to remember which category applies to each line item.

Key capabilities relevant to Nigerian VAT:

Automatic VAT classification: KARR flags whether a supply is standard-rated (7.5%), zero-rated, or exempt under the Nigeria Tax Act 2025 rules — basic food, healthcare, education, and public transport are handled without manual override.
Monthly VAT return preparation: KARR compiles your output VAT, input VAT, and net payable from a single ledger, ready for submission to FIRS via TaxPro-Max by the 21st.
Pre-filing compliance check: KARR's anomaly detection flags misclassified transactions and missing VAT invoices before you file — catching errors when they are cheap to fix, not after an audit notice arrives.
Invoice generation: Every invoice KARR generates shows the VAT amount as a separate line, your TIN, and the date of supply — meeting FIRS invoice requirements.
Offline-first architecture: KARR works without an internet connection, so your records stay current even in areas with unreliable connectivity — a practical feature for Nigerian businesses outside Lagos and Abuja.
Pricing: Free plan ($0), Pro ($12/month), Business ($29/month).

For a business owner managing VAT for the first time, KARR's "What Happened?" guided wizard translates everyday business events — "I sold goods," "I paid a contractor" — into correct VAT journal entries without requiring accounting knowledge.

Common Mistakes to Avoid

Not registering because turnover is small. Unlike corporate income tax, VAT has no small-business exemption. If you make taxable supplies, you must register.
Charging VAT before registration is approved. You cannot legally charge VAT until FIRS confirms registration. Charge it early and you have collected tax you cannot remit — a liability, not revenue.
Treating all food as zero-rated. Only basic food and consumables qualify. Processed snacks, restaurant meals, and beverages may be standard-rated. Check the specific goods against FIRS guidance.
Missing the 21st deadline. Even one day late triggers penalties. File early — the portal is often slow close to the deadline.
Not keeping input VAT documentation. You can only deduct input VAT if you hold a valid VAT invoice from a registered supplier. No invoice, no deduction.