FULL LIST: Sanitary pads, energy exports, land… items exempted from VAT in new tax law The new Nigeria Tax Act has exempted several items from
the 7.5 percent value-added tax (VAT)
The legislation is among four tax reform bills signed into
law by President Bola Tinubu on June 26.
The others are the Nigeria Tax Administration Act, the Joint
Revenue Board (Establishment) Law, and the Nigeria Revenue Service
(Establishment) Act.
The laws are expected to take
effect from January 1, 2026, under a renamed agency — the Nigeria
Revenue Service (NRS).
The Nigeria Tax Act, seen by TheCable, exempts about 15
items from the VAT, subjecting an additional 19 to VAT at a zero percent rate.
Here’s a list of items that fall under the VAT exemption
category.
SUPPLIES EXEMPTED FROM VAT
No.
ITEM
1
Oil and gas exports
2
Crude petroleum oil and feed gas for all processed gas
3
Goods purchased for use in humanitarian donor funded
projects
4
Baby products
5
Locally manufactured sanitary towels, pads or tampons
6
Military hardware, arms, ammunitions and locally
manufactured uniforms supplied to armed forces, para-military and other
security agencies of a Nigerian government
7
Shared passenger road-transport service
8
Purchase, hire, rental or lease of tractors, ploughs and
other equipment used for agricultural purposes.
9
Supplies consumed by an approved entity in the export
processing or free trade zones, provided that the supplies are consumed on
its approved activity
10
Goods or services supplied to a diplomatic mission,
diplomat or person recognised under the Diplomatic Immunities and Privileges
Act whose activity is in public interest, and not for profit
11
Plays and performances conducted by educational
institutions as part of learning
12
Land or building including interest in land or building
13
Money or securities including interest in money or
securities
14
Government licences
15
Assistive devices and disability-related products
including hearing aids, wheelchairs, and braille materials
TAXABLE SUPPLIES CHARGED TO VAT AT 0%
No.
ITEM
1
Basic food items
2
All medical and pharmaceutical products including
medicinal herbal products
3
Educational books and materials
4
Fertilisers
5
Locally produced agricultural chemicals
6
Locally produced veterinary medicine
7
Locally produced animal feeds
8
Live cattle, goats, sheep and poultry
9
agricultural seeds and seedlings
10
Electricity generated by generation companies (GENCOs) and
supplied to national grid or Nigeria Bulk Electricity Trading Company (NBET)
11
Electricity transmitted by Transmission Company of Nigeria
(TCN) to electricity distribution companies (DISCOs)
12
Medical services
13
Tuition relating to nursery, primary, secondary or
tertiary education
14
Exported goods excluding oil and gas
15
Exported services
16
Exported incorporeal property
17
Medical equipment
18
Electric vehicles
19
Parts, semi-knock-down units for the assembly of electric
vehicles
ADDITIONAL VAT EXEMPTIONS IN OIL, GAS SECTOR
On October 2, 2024, the federal government introduced the
VAT modification order and notice of tax incentives for deep offshore oil and
gas production.
The order exempted VAT collection on a range of key energy
products and infrastructure, including diesel, feed gas, liquefied petroleum
gas (LPG), compressed natural gas (CNG), electric vehicles, liquefied natural
gas (LNG) infrastructure, and clean cooking equipment.
Two days later, Taiwo Oyedele, chairman of the presidential
committee on fiscal policy and tax reforms, unveiled the
63 items exempted from VAT.
According to the new tax Act, the VAT would not be collected
on petroleum products, renewable energy equipment, compressed natural gas
(CNG), LPG, and other gaseous hydrocarbons.
However, the law stipulated that the minister, by an order
published in the official gazette, can determine when VAT collection would be
suspended on the items.
“Charging and collection of VAT on the following items shall
commence on the date indicated by the Minister, or suspended where it is
expedient to do so in the public interest, by an order issued in the Official
Gazette,” the document further stated.
According to the act, some other items may also be
classified as exempt or zero-rated supplies by an order issued by the minister
in the official gazette.
The listed items include equipment, components and
infrastructure related to the conversion and installation or expansion of CNG
and LPG, including conversion kits; and services relating to the conversion and
installation of CNG and LPG.
Source:
FULL LIST: Sanitary pads, energy exports, land… items exempted from VAT in new tax law - NigerianEye
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October 16, 2014, 04:56:57 PM