Nigeria: Extension of VAT exemption for certain goods and services

Amendments to VAT expand the list of exempt goods and services

Amendments to VAT expand the list of exempt goods and services

Amendments to the value added tax (VAT) law in Nigeria expand the list of exempt goods and services and update the definitions of certain terms to provide for consistency.

The changes are pursuant to the “Value Added Tax (Modification) Order, 2021” as published in the official gazette on 21 September 2021.  

The list of VAT-exempt goods includes:

  • Petroleum products
  • Renewable energy equipment
  • Raw materials for the production of baby diapers and sanitary towels
  • Raw materials for the production of pharmaceutical products
  • Domestically produced animal feeds
  • Military hardware, arms, ammunition, and domestically manufactured military uniforms
  • Gas supplied by gas-producing companies to electricity-generating companies
  • Agricultural seeds and seedlings

Services added to the list of VAT exemption include shared passenger road-transport service.

Read an October 2021 report [PDF 501 KB] prepared by the KPMG member firm in Nigeria

 

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