Nigeria VAT codes and rates
Nigeria charges VAT at 7.5%. When you create a company in Nigeria, Nefin sets up 3 sales and 5 purchase codes, each tied to a box of the VAT return (Form 002). Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the VAT Form 002 - Sales/Income and the VAT Form 002 - VAT on Purchases/Expenses, ready to file every month.
VAT codes from the VAT return (Form 002)
Each code is the box or line it fills on the VAT return (Form 002), named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 40 | Sales subject to VAT 7.5% (Line 40)Default | 7.5% |
| 30 | Zero rated goods and services incl. exports (Line 30) | 0% |
| 25 | Exempted goods and services (Line 25) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| 50 | Domestic purchases 7.5% (Line 50)Default | 7.5% |
| 55 | Domestic purchases of zero rated goods (Line 55) | 0% |
| 65 | Imported goods 7.5% (Line 65) | 7.5% |
| NR-EX | Exempt purchases (not on Form 002) | 0% |
| NR-ND | Purchases with non-claimable VAT 7.5% (not on Form 002) | 7.5% |
Nigeria VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
VAT Form 002 - Sales/Income
B - Sales/Income
- [40]40 Income received from sales subject to VAT
- [30]30 Value of zero rated goods and services
- [25]25 Value of goods and services exempted
Totals Nefin calculates
- [20] 20 Total income from sales excluding VATSum of the net amounts in [40] + [30] + [25]
- [45] 45 Total output tax collected @ 7.5%Sum of the tax charged in [40]
Purchase book
VAT Form 002 - VAT on Purchases/Expenses
C - VAT on Purchases/Expenses
- [50]50 Domestic purchases other than zero rated and exempted
- [55]55 Domestic purchases for zero rated goods
- [65]65 Payment for imported goods
Not on Form 002
- [NR-EX]Exempt purchases
- [NR-ND]Purchases with non-claimable VAT
Totals Nefin calculates
- [60] 60 Total domestic purchases subject to input tax (50 + 55)Sum of the net amounts in [50] + [55]
- [70] 70 Total purchases subject to input tax (60 + 65)Sum of the net amounts in [50] + [55] + [65]
- [75] 75 Total input tax paidSum of the tax charged in [50] + [65]
Source
These codes are a starting point: the rates are right, but the box references come from secondary sources (FIRS VAT Returns Form 002 (2020 PDF via web.archive.org of old.firs.gov.ng); not confirmed current under NRS/Rev360 (2026)). Check them against your VAT return (Form 002) before you file, and edit them in Settings, VAT rates.
Frequently asked questions
What is the VAT rate in Nigeria?
The standard rate is 7.5%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in Nigeria?
3 sales codes and 5 purchase codes, each named after the VAT return (Form 002) box it fills, for example 40 (Sales subject to VAT 7.5% (Line 40), 7.5%), 30 (Zero rated goods and services incl. exports (Line 30), 0%) and 25 (Exempted goods and services (Line 25), 0%).
How often is the VAT return (Form 002) filed?
Nefin defaults to monthly filing, the usual period for a small or medium registered business in Nigeria. Your tax authority may assign you a different one.
Are these Nigeria VAT codes official?
They are a starting point. The rates are current, but the box references could not be checked against the authority's own form, so check them against your VAT return (Form 002) before you file.
Does Nefin produce the Nigeria VAT books?
Yes. The VAT Form 002 - Sales/Income lists every invoice and the VAT Form 002 - VAT on Purchases/Expenses every bill, one row per document with a column for each return box, plus the totals the return asks for.