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Best way to Calculate VAT in Nigeria Today

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Best way to Calculate VAT in Nigeria Today
VAT simply means Value Added Tax. It is the percentage (%) of value in attached to a particular commodity(Goods or Service).
In Nigeria, VAT is 5% for STANDARD goods in Nigeria and new luxury goods VAT rate of 15%
To calculate VAT in Nigeria
For example, you buy a particular you buy particular goods for N500,000.00 to calculate VAT we say;
Solution
500,000.00+%5 = Answer
5% of 500,000.00 + Actual amount of goods
5% of N500,000.00=N25,000.00
Therefore; 
N25,000.00+N500,000.00=N525,000.00 (Actual payable amount of VAT in Nigeria for that goods)
PLEASE NOTE; According to VAT ACT 1993 their are some goods that are not expected to pay for VAT in Nigeria.
Goods like;
  • Infant food
  • Basic food items
  • Raw Materials for medicinal, veterinary and medical purpose
  • Agricultural Equipment, etc.

It is expected that you pay your TAX 30th day of the following month. For instance, if you have started a business on march 15, you need to provide the document of the April 30th.

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