Current VAT Rate in Nigeria 2026: Official 7.5% Standard Rate and New NRS Rules
The Nigeria Revenue Service (NRS) has intensified its focus on collecting Value Added Tax (VAT) from foreign digital entities.
Under the 2026 National Tax Act, any foreign company providing services to a person in Nigeria is liable for VAT.
We have identified that this applies even if the company has no physical office or “fixed base” within Nigeria.
This means US-based providers of streaming, cloud storage, and social media ads must now collect and remit 7.5% VAT.
The NRS has identified “Digital Services” to include software-as-a-service (SaaS), electronic data, and digital content.
| Service Type | 2026 VAT Status | Rate |
| Streaming (Netflix/YouTube) | Taxable | 7.5% |
| Cloud/SaaS (Google/AWS) | Taxable | 7.5% |
| Social Media Ads (Meta/X) | Taxable | 7.5% |
| Professional Consulting | Taxable | 7.5% |
| Educational Materials | Exempt | 0% |
If you are a US-based business, you are required to register with the NRS through the dedicated “Non-Resident” portal.
Unlike local businesses, there is currently no ₦25 million turnover threshold for foreign digital service providers.
Every dollar earned from a Nigerian consumer or business is subject to the standard 7.5% VAT rate.
The NRS now uses automated tracking to identify payments made to international merchant IDs.
Banks in Nigeria have been authorized to act as “Collection Agents” where a foreign firm fails to register.
This ensures that the 7.5% is deducted at the point of payment and remitted directly to the NRS.
For Nigerian businesses buying from abroad, you must ensure your US vendor provides a valid NRS VAT invoice.
Without this identified invoice, you may be unable to claim “Input VAT” recovery on your monthly filings.
The 2026 reforms aim to create a level playing field between local tech firms and global giants.
