Invoice Calculator

Calculate Nigerian invoice amounts including VAT (7.5%) and Withholding Tax deductions to find the exact net amount payable.

Invoice Details

Subtotal (before VAT)

₦

VAT Rate

Include VAT (7.5%)Deduct WHT

WHT Rate

Net Payable to Vendor

₦512,500

Subtotal

₦500,000

VAT Added

₦37,500

Total Invoice Amount

₦537,500

WHT Deducted

₦25,000

WHT is deducted by the client and remitted to FIRS. The vendor receives Net Payable but can claim WHT credit against their CIT liability.

How to Use This Calculator

Enter your invoice subtotal (the base amount before tax). Check the boxes to include VAT (7.5% by default) and/or deduct Withholding Tax (WHT). The calculator shows the total invoice amount and the net amount the vendor will actually receive after WHT deduction.

The Formula

VAT = Subtotal × VAT Rate (7.5%) Total Invoice = Subtotal + VAT WHT = Subtotal × WHT Rate (5% or 10%) Net Payable = Total Invoice − WHT

Note: WHT is applied to the subtotal (before VAT), not the VAT-inclusive total. VAT is collected on behalf of FIRS by the supplier and remitted. WHT is deducted at source by the buyer and remitted to FIRS on behalf of the supplier.

Example

IT Services Invoice — Lagos Company to Abuja Client

Subtotal (services fee)₦500,000

VAT (7.5%)+₦37,500

Total Invoice Amount₦537,500

WHT Deducted (5%)−₦25,000

Net Amount Vendor Receives₦512,500

The client remits ₦25,000 WHT to FIRS and ₦37,500 VAT (after netting input VAT). The vendor receives ₦512,500 but can use the ₦25,000 WHT credit to offset CIT liability.

FAQ

Common WHT rates as per FIRS: Professional services (consulting, legal, accounting) — 10% for companies, 5% for individuals. Management fees — 10%. Construction and building — 5%. Rent — 10%. Dividends, interest — 10%. Agency, brokerage — 5% for companies. The rate applied depends on the nature of the service and whether the vendor is a company or individual.

VAT at 7.5% applies to most goods and services. Notable exemptions include: basic food items, medical/pharmaceutical products, educational materials, exported services, agricultural equipment, and baby products. If your transaction falls under an exempted category, untick the VAT box. Businesses with annual turnover above ₦25 million must register for VAT and charge it on taxable supplies.

No. WHT deduction is mandatory under the Companies Income Tax Act when the qualifying payment is made. A vendor cannot legally refuse it. However, vendors should always obtain the WHT receipt from the payer, as this credit is used to offset Corporate Income Tax (CIT) liability when filing annual returns. Failure to get the receipt means losing the tax credit.