Top 10 Highest VAT Paying Sectors in Nigeria

VAT which stands for Value-Added Tax, is a standard charge on goods and services. VAT rate is a percentage of the cost of goods and services. In Nigeria, VAT rate is 7.5%. The companies that manufacture goods and provide services collects the VAT from their consumers and remit same to the government.

Some goods and services are VAT exempted, which are called Zero-rated items. Zero-rated items include goods and services purchased by diplomats, goods purchased for use in humanitarian donor-funded projects, and goods purchased for social development. Exempt items include plants and machinery for use in export processing zones (EPZs) or free trade zones (FTZs), basic food items (based on a specific list), medical products and services, pharmaceutical products, books and educational materials, and exported services. 

Top Leading V.A.T Paying Sectors

Manufacturing  N281bn

ICT N193bn

Mining and Quarrying N107bn

Financial Services N93bn

Public Administration N71bn

Trade N63bn

Transportation N32bn

Other Services Activities N26bn

Construction N18bn

Electricity N6bn

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