Financial Record-Keeping Management

 If your business is operating in Nigeria, it is essential to understand the country’s VAT (Value-Added Tax) rules. What is Value Added Tax? VAT is a consumption tax in Nigeria that is applied to most products and services sold within the country. When selling products or services to Nigerian customers, you are required to add VAT to the sale. What is the VAT rate in Nigeria? Currently, the VAT rate is set at 7.5%, it was increased from 5% as of February 1, 2020. Who pays VAT in Nigeria? VAT is paid by the final consumer. All goods and services produced within or imported into the country are taxable except those specifically exempted by the VAT Act.  Sales Registration Threshold In Nigeria, there is an annual sales registration threshold of NGN 25,000,000. This means: If your total sales in Nigeria are below NGN 25,000,000 in any rolling 12-month period, you don’t need to register for VAT. If your sales exceed NGN 25,000,000, you must register for VAT and comply with l...