Tax guide
VAT Estimate for Nigerian Businesses (2026)
Model output VAT, input credits, and monthly VAT reserve. Includes registration threshold context above ₦25m turnover.
Short answer: VAT is charged at 7.5% on taxable supplies. Registered businesses offset input VAT against output VAT. The calculator estimates output VAT, credits, and a monthly VAT reserve.
Registration threshold
If annual taxable turnover exceeds ₦25 million, VAT registration is typically mandatory. The calculator shows an alert when your supplies cross that planning threshold.
What to enter
- Annual taxable supplies (standard-rated sales)
- Exempt supplies if any
- Input VAT you expect to claim on purchases
Output VAT minus creditable input VAT gives your net VAT position for planning.
What this mode does not model
- Zero-rated exports and apportionment
- Mixed supply chains across states
- Filing deadlines and penalties
Treat the result as a reserve estimate before you speak to your accountant.
Run a VAT estimate
Open Staff Pay Tax Calculator — VAT mode.
Sources reviewed
- Nigeria Tax Act 2025 — VAT framework
- Staff Pay Tax Calculator VAT assumptions (counsel-reviewed, September 2026)
Educational only. Not a VAT return.
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