Adding and removing VAT
To add VAT, multiply the net price by 7.5%. A ₦100,000 invoice becomes ₦107,500.
To take VAT out of a total, divide by 1.075. Taking 7.5% off the total is a common mistake: 7.5% of ₦107,500 is ₦8,062.50, but the VAT inside it is ₦7,500.
When a business has to charge VAT
Registration, the treatment of exempt and zero-rated supplies, and what input VAT you can recover all changed under the 2025 tax reform. If your invoices or returns have not been reviewed since, ask our tax team.
