Is VAT charged on food in Nigeria?

Nigeria Clarifies VAT Exemption for Basic Food Items and Other Supplies. Nigeria’s Ministry of Finance has reportedly issued the Value Added Tax (Modification Order) 2020, which clarifies and expands the list of VAT exempt goods as per amendments made by the Finance Act 2019, including an exemption for basic food items …

Is there VAT on food in Nigeria?

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. …

Do I charge VAT on food?

Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. … This will apply to all food and non-alcoholic drinks from restaurants, pubs, bars, cafés and other similar businesses across the UK.

What are the items exempted from VAT in Nigeria?


  • all medical and pharmaceutical products;
  • basic food items;
  • books and educational materials including educational performances and tuition from nursey to tertiary education;
  • baby products;
  • all exported goods and services;
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What food items are exempt from VAT?

You can zero rate all supplies of unprocessed foodstuffs such as:

  • raw meat and fish.
  • vegetables and fruit.
  • cereals, nuts and pulses.
  • culinary herbs.

Is VAT payable on tuition fees?

Private tuition exemption is usually the most misunderstood part of VAT exemption. In order, to exempt the supply of tuition, two conditions must be met: The supply of tuition should be of a subject that is normally taught in a school or university, along with the evidence required that it is normally taught.

What food items have VAT on them?

VAT on Food Items

  • Raw meat and fish.
  • Vegetables and fruit.
  • Cereals, nuts, and pulses.
  • Culinary herbs.

What is the VAT on food in a restaurant?

Value added tax, or VAT is a tax that vendors like restaurants pay on sales at a rate of 20 percent in normal times. Chancellor Rishi Sunak introduced a U.K. VAT cut to 5 percent on food as part of coronavirus support for businesses in July last year — a reduction which is scheduled to expire on 31 March this year.

What percentage is VAT?

The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT , such as postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services.

How is VAT calculated in Nigeria?

VAT is calculated at a flat rate of 7.5% on all goods and services sold in Nigeria; this is stipulated under section 4 of the VAT Act, except items that are on the VAT exempt list or zero-rated. An example of such is exported goods, all exported goods are zero-rated, that is such goods are VAT-able but at zero percent.

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Who is exempt from paying VAT?

If you are a VAT registered business, you can sell goods or services to charities at a zero or reduced rate. If you are a charity, you must register for VAT once your taxable sales exceed the £85,000 threshold—making you a partially exempt business.

Is water VATable in Nigeria?

The Federal High Court (Court) has held that water is a basic food item and therefore exempt from Value Added Tax (VAT) regardless of whether it has been processed or packaged.

Is Rice VAT exempt?

There are many exemptions, including sales or importations of agricultural goods such as livestock for breeding, rice and corn grits, seeds and fertilizers, hospital services but not those of professionals, educational services, sales of books and newspapers, bank services, and fuel imports.

What items do you pay VAT on?

VAT is charged on most goods and services, such as:

  • business sales.
  • loaning goods.
  • selling business assets.
  • commission.
  • items sold to staff, such as hot meals in the canteen.
  • business goods used for personal reasons.
  • ‘non-sales’, such as gifts and part-exchange.

Does coffee have VAT?

A visual guide to VAT on food and drinks for cafes, restaurants, bakeries, caterers and other hospitality businesses. This guide is for small business owners of UK cafes, restaurants, bakeries and caterers. … You charge VAT at 0% on zero rated products. For example, the sale of coffee beans is zero rated.

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