How is VAT Computed?

Effectively, from the 1st of February 2020, entities that are registered for VAT ( excluding small companies – i.e., companies with less than NGN25,000,000 turnover are required

The Finance Act provides that VAT is chargeable and payable on the supply of all taxable goods and services in Nigeria other than those goods and services that are specifically exempted from the tax under the VAT Act. Goods are deemed to be supplied in Nigeria where the goods are: (a) physically present in Nigeria at the time of the supply; (b) imported into Nigeria for use by a person in Nigeria; (c) assembled or installed in Nigeria; or (d) the beneficial owner of the rights in or over the goods is a taxable person, and the goods or right is situated, registered or exercisable, in Nigeria. In relation to services, taxable services are deemed to be supplied in Nigeria if the services are (i) rendered to a person in Nigeria by a person physically present in Nigeria at the time that the service was provided; or (ii) provided to a person resident in Nigeria irrespective of where the services are rendered from