October 2021

Value Added Tax (VAT) is a consumption tax payable on goods and services in Nigeria except those specifically exempted by the VAT Act. The Finance Act 2019 amended the VAT Act by increasing the current VAT rate to 7.5% from the 5% stated in the VAT Act, as amended in 2007. By virtue of Section 7 of the VAT Act, the administration of VAT is vested in the Federal Board of inland Revenue, now the Federal Inland Revenue Service (FIRS), which acts as a Federal Tax Agency.