VAT calculator for Nigeria
The standard VAT rate in Nigeria is 7.5%. To remove it from a gross price you divide by 1.0750, which is not the same as taking 7.5% off.
%
Price including VAT
107.50
- VAT to add
- 7.50
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 7.50
- Line total for the quantity
- 107.50
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.069 767
- Gross-up multiplier
- 1.075 000
- How far the subtraction method goes wrong
- 0.56
Show the working
- Price excluding VAT = 100
- VAT rate = 7.5
- Price including VAT = 107.5
- Quantity = 1
- VAT to add = 100 * 7.5 / 100 = 7.5
- Price including VAT = 100 + 7.5 = 107.5
- Line total for the quantity = 107.5 * 1 = 107.5
- Net price behind a gross one = 107.5 / (1 + 7.5/100) = 100
- VAT inside a gross price = 107.5 - 100 = 7.5
- VAT fraction of a gross price = (1 + 7.5/100) > 0 ? (7.5/100) / (1 + 7.5/100) : 0 = 0.069 767 4
- Gross-up multiplier = 1 + 7.5/100 = 1.075
- wrong_way = 107.5 * (1 - 7.5/100) = 99.4375
- How far the subtraction method goes wrong = 100 - 99.4375 = 0.5625
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.069767
The VAT fraction is the shortcut accountants use: at 7.5% you multiply a gross figure by 0.069767 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
Frequently asked
What is the VAT rate in Nigeria?
The standard rate is 7.5%.
How do I remove VAT from a price?
Divide by 1.0750. Subtracting 7.5% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.