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Nigeria: VAT exemption for food clarified

Nigeria: VAT exemption for food clarified

An order modifying the “first schedule” of the value added tax (VAT) law defines and expands the list of goods and services that are exempt from VAT. The order also clarifies and interprets certain VAT measures that were amended by Finance Act, 2019.


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For VAT purposes, “basic food items” as described in the Finance Act, 2019 excludes food items sold at restaurants, hotels, eateries, lounges, and other similar premises from the VAT exemption. The order further provides that basic food items sold by contractors, caterers, and other similar vendors will not qualify for the exemption.

Read a May 2020 report prepared by the KPMG member firm in Nigeria

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