VAT
(Value Added Tax)
What is VAT?
Value Added Tax (VAT) is a consumption tax charged on most goods and services in Nigeria at a rate of 7.5%. Businesses with turnover above ā¦25M must register and remit VAT to FIRS.
VAT is collected at each stage of the supply chain but ultimately borne by the final consumer.
VAT in Nigeria
Nigeria's VAT rate is 7.5% (increased from 5% in 2020). Businesses with annual turnover exceeding ā¦25 million must register for VAT. Monthly returns must be filed by the 21st.
Example
If you sell a product for ā¦100,000, you charge ā¦7,500 VAT (7.5%), making the total ā¦107,500. You remit the ā¦7,500 to FIRS, minus any VAT you paid on business purchases.
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