How much is VAT on food in Nigeria?

Is there VAT on food in Nigeria?

Basic food items are listed as VAT exempt in the VAT Act. However, the Act did not provide a definition of what constitutes basic food items.

Is VAT charged on food?

Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Is flour VAT exempt in Nigeria?

New items on the VAT exemption list include basic food items such as additives (honey), bread, cereals, cooking oils, culinary herbs, fish, flour and starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt, vegetables, and water (natural water and table water).

What items are VAT exempt in Nigeria?

Goods Exempt

  • All medical and pharmaceutical products.
  • Basic food items.
  • Books and educational materials.
  • Baby products.
  • Locally produced fertilizer, agricultural and veterinary medicine, farming machinery and farming transportation equipment.
  • All exported goods.

What is the VAT on food?

VAT on food and non-alcoholic drinks: 5% rate

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A 5% rate of VAT applies to supplies of: Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs. Hot takeaway food and hot takeaway non-alcoholic beverages.

Can I claim back VAT on food?

You can reclaim the VAT on any travel, accommodation costs and business subsistence such as food and drinks purchased for yourself as a director or for any employees. Remember, travel from your home to your usual place of work is not a business expense and most public transport is zero rated.

Do you pay VAT on Mcdonalds?

This month, the cost of your favourite McDonald’s meal has gotten considerably cheaper, as VAT was slashed from 20% to just 5%. The VAT cut means that some of your favourite menu items are cheaper than ever before.

What is VAT charge?

The standard 23% rate of VAT applies to a wide range of goods and services. These goods include motor vehicles, adult clothing, electrical goods, petrol, alcohol, tobacco, most household goods, non-basic foodstuffs. The standard rate of VAT is also applied to most professional services and telecommunications.

How is Nigerian VAT paid?


The VAT is charged on most goods and services provided in Nigeria and also on goods imported into Nigeria. Businesses add VAT to the sales price of the goods or services they offer in Nigeria and the tax is borne by the final consumer of goods and services because it is included in the tax paid.

What are the new rules on VAT?

From 1 March 2021, new ‘reverse charge VAT accounting’ rules apply to all qualifying supplies made on or after that date. This means that: Suppliers of goods or services are no longer be involved in the payment of VAT to HMRC. The liability for VAT payment is now be with the VAT registered customer.

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Is bread VAT exempt?

The VAT Act provides for the supply of certain foodstuffs to be zero-rated. … The VAT Act contains a list of 19 food items that qualify for the zero rating. These include, amongst others, items such as fresh fruit and vegetables, brown bread, milk and eggs.

Is milk VAT exempt?

Standard rated goods have the standard rate of VAT added to the selling price while zero rated goods do not have any VAT added to the selling price. Zero rated items include most of the goods you will sell, such as: milk and dairy products. eggs, potatoes, bread and other food items.

Are schools exempt from VAT in Nigeria?

Now education and training are clearly VAT exempt, to the extent that the educational institution is public (i.e. government) or NFP owned. … Private schools will need to prove they are NFPs to enjoy the VAT exemption. Many private schools out there are profit-based, so you can exempt tuition fees to go up by 5%.