Goods are the obvious VAT example, but a service is charged the same way, standard rate included, unless a specific rule says otherwise.
People selling a service, rather than a physical product, sometimes assume VAT works differently for them. It generally does not.
The default answer
A service counts as a taxable supply under the Nigeria Tax Act, exactly like goods. That means 7.5% applies by default to a service sold in Nigeria.
Consulting, repairs, design work and similar services all follow that default unless they fall on one of the two lists that treat things differently. So do less obvious services, such as event planning, photography or software support.
Which services are zero-rated
Medical services and equipment, and tuition from nursery through to tertiary level, are among the services zero-rated at 0% rather than standard-rated. Our comparison of exempt and zero-rated supplies covers the fuller list, which includes goods as well as services.
A zero-rated service still lets the provider recover input VAT on its own costs, unlike an exempt one. That distinction is worth checking before assuming a zero-rated service is treated like an exempt one on the provider's own return. Confusing the two changes what a provider can legitimately claim back on its costs.
Which services are exempt instead
Land and buildings, including rent, sit on the exempt list rather than the zero-rated one, even though a lease is arguably a kind of service. Our dedicated piece on rent looks at what that exemption actually means for a landlord.
Beyond property, the exempt list leans towards goods more than services, so most service businesses default back to the standard rate.
A quick way to check a specific service
Ask two questions before you invoice. First, is the service on the zero-rated list, such as medical care or tuition? Second, is it on the exempt list, which for services is mostly limited to land and buildings?
If the answer to both is no, 7.5% applies. That covers the overwhelming majority of professional, creative, technical and consulting services sold inside Nigeria.
What this means for an invoice
A service invoice should show 7.5% unless the specific service is genuinely zero-rated or exempt. Applying the standard rate automatically, without checking the lists, is a safer default mistake to catch than the other way round.
Our guide to VAT invoices and records covers what an invoice should reflect once the rate itself is settled.
For a service sold to a client abroad rather than in Nigeria, the answer changes again: see our piece on exported services. A small business under the VAT turnover exemption is a separate case again, since it does not charge VAT on services at all until it registers. For the filing side, the VAT monthly return guide covers the rest.