VAT Calculator
Add VAT to a price, or find the price before VAT was added.
How to use this tool
- To add VAT, enter the price before VAT in the left box.
- To work backwards, enter a VAT-inclusive total in the right box.
- The rate starts at 7.5%. Change it if your goods or country use a different rate.
How it works
VAT is a percentage added to the selling price. Adding it multiplies the price by one plus the rate. Removing it divides the total by the same number.
You cannot take VAT out by subtracting the rate from the total. On a 1,075 total at 7.5%, 7.5% of 1,075 is 80.63, but the real VAT is 75.
Example. 1,000 before VAT at 7.5% adds 75, so the total is 1,075. Going back, 1,075 / 1.075 gives 1,000, and the VAT is 75.
VAT in Nigeria
The standard VAT rate in Nigeria is 7.5%, which is why it is the starting value here. Some goods and services are exempt or zero-rated, and businesses above the registration threshold must charge and report VAT.
Rules change, so confirm what applies to your business with the tax authority or an accountant. This tool does the arithmetic only.
Frequently asked questions
What is the VAT rate in Nigeria?
The standard rate is 7.5%. Some items are exempt or zero-rated, so check the current rules for what you sell.
How do I take VAT out of a total?
Divide the total by 1 plus the rate as a decimal. At 7.5% that means dividing by 1.075. The right-hand box does this for you.
Can I use another country's rate?
Yes. Change the rate field to any percentage, for example 20 for a 20% rate.
Does it work for GST or sales tax?
Yes for any tax that is a flat percentage on the price. Rules for what is taxed differ by place.