Goods and Services Exempted from Value Added Tax (VAT) in Nigeria

Value Added Tax, also known as VAT, is a consumption tax assessed on goods and services provided at each stage of the production process, from labor and raw materials to the sale of the final product or service. The VAT rate in Nigeria is currently pegged at 7.5%, a 50% increase from its previous rate of 5%. 

The primary legislation governing VAT in Nigeria is the Value Added Tax Act Cap V8 LFN 2004 (VAT Act) which provides for the administration of VAT and lists the goods and services that are exempt from this tax. The Finance Act 2019 also seeks to provide guidance on the administration of VAT and adds to the list of goods and services exempt from VAT. The more recent Value Added Tax Act (Modification Order) 2020 seeks to provide further clarity on the definition of some exempted goods/terms and extends the list of exempted items in the First Schedule of the VAT Act.