Tax & VAT
VAT in Nigeria (Rate, Threshold & Filing)
How VAT works in Nigeria — the 7.5% rate, the small-business turnover exemption, monthly filing with the NRS, and the national e-invoicing rollout.
Published 5 July 2026 · 6 min read
The short answer
- Nigeria charges 7.5% VAT, now administered by the Nigeria Revenue Service (NRS, formerly FIRS).
- Under recent reform, a 'small business' below NGN 100,000,000 turnover need not charge VAT or file VAT returns.
- VAT returns are filed monthly, generally by the 21st of the following month.
- A National E-Invoicing Solution is rolling out, issuing validated invoices with an IRN, cryptographic stamp and QR code.
- This is general information — confirm current rates, thresholds and rules with the NRS or a qualified tax professional.
How VAT works in Nigeria
Value Added Tax in Nigeria is charged at 7.5% on most goods and services, with a range of zero-rated items (such as basic food, medical and educational supplies, and exports) and exemptions. It is administered by the Nigeria Revenue Service (NRS), which was renamed from the Federal Inland Revenue Service (FIRS) under 2025 reforms.
VAT-registered businesses add 7.5% to taxable supplies, recover input VAT where allowed, and remit the balance to the NRS.
The small-business exemption
Recent tax reform sets a turnover threshold: a small business with annual gross turnover of NGN 100,000,000 or less (and fixed assets below a set limit, excluding professional services) need not charge VAT or file VAT returns. This replaced the older, much lower threshold. If you are near the limit, confirm your obligations with the NRS or a professional, as the rules are new.
Filing and e-invoicing
Businesses within scope file VAT monthly, generally by the 21st of the month following the supply. Nigeria is also rolling out a National E-Invoicing Solution (the Electronic Fiscal System / Merchant-Buyer Solution), where B2B invoices are cleared in real time and validated invoices receive an IRN, a Cryptographic Stamp ID and a QR code. The rollout is phased, so check whether it currently applies to you.
How Tallium helps
Tallium applies 7.5% VAT on your sales and expenses where it applies, keeps your books in step, and builds a VAT-return-ready summary for the NRS — and is designed to work with e-invoicing requirements as they roll out. Always confirm current thresholds and rules with the NRS or a qualified tax professional.
Frequently asked questions
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Tallium keeps your accounting, tax and invoicing ready for your country's rules as you trade — from $79/month per shop.
Build your planThis article is general information, not tax or legal advice. Always confirm current rules with your country's tax authority or a qualified adviser.