Vat Calculator For Nigeria
Nigeria's Online 7.5% VAT calculator
Calculate your current Vat in Nigeria today in the year 2023 at 7.5% Rate
What is VAT amount in Nigeria?
The standard rate of VAT in Zambia increased from 16% but in Nigeria it is now gone up to 7.5% which is the Vat rate for 2023. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.The VAT rate in Nigeria 2023 is 7.5% at which VAT is levied and the standard rate of 7.5% on the supply of goods and services by registered vendors. A vendor making taxable supplies of more than R1 million per annum must register for VAT.
According to data tracked by our website, Nigeria recorded its highest quarterly VAT revenue in 2023, since the federal government reviewed the VAT rate upward to 7.5% in 2019.
VAT inclusive and VAT exclusive formula
The VAT tariff is added to the product price exclusive of VAT. The price exclusive of VAT is not like gratuity can be converted into the price inclusive of VAT by applying the following formula. Calculation rule: (Amount exclusive of VAT) * (100 + VAT percentage as a number) / 100 = Amount inclusive of VAT.What is the current VAT in Nigeria?
The local name for VAT in Nigeria is Value-added tax (VAT). There is basically 1 VAT rate in Nigeria: Standard VAT rate is 7.5%How is VAT calculated in Nigeria?
If you want to add VAT to the price, you just need to divide the price by 100 and then multiply by (100 + VAT rate).History of Value Added Tax in Nigeria
VAT was introduced in Nigeria by a decree of 102 in the year 1993 and implementation began in 1994. It replaced other forms of tax such as the law for sales tax of 1986. VAT in Nigeria has become the fastest growing tax revenue head in Nigeria.How to calculate VAT in Nigeria?
- Enter price of goods excluding VAT, then multiply the cost of goods by 7.5% VAT Rate
- Devide the number by 100 to get the cost of goods inclusive VAT in Nigeria
- The result of your calculation is your VAT price, including VAT. For example: NGN (Nigerian Dollar) 175 / 15 x 100 = NGN (Nigerian Dollar) 203,00. This means the VAT amount at 7.5% NGN (Nigerian Dollar) rate is R 28,00.
You calculate 7.5% VAT by calculating the net amount x 1.20, then you have the gross amount. If you want to know how much VAT is in the amount, you the gross amount / 15 = net amount *100. The result is the VAT included.
The tax amounts for all tax codes are added to the sub-total to derive the total for the transaction. You buy an item for 1,000 plus 7.5% goods and services tax. If the amount of 1,000 is tax-exclusive, 7.5% tax is added to it, increasing the total.
VAT exclusive price is the price of goods or services before VAT is added. The use of VAT exclusive prices should only be used when the prices are aimed at buyers who can recover any VAT charged, for example 'trade prices', 'loans' for businesses and other goods been purchased in the country, or importation of vehicles.