VAT & withholding tax invoice calculator
Work out the invoice total with 7.5% VAT, the withholding tax your client will deduct, and the amount that will actually land in your account.
Your client pays you
₦1,025,000
- Amount before VAT
- ₦1,000,000
- VAT (7.5%)
- +₦75,000
- Invoice total
- ₦1,075,000
- Less WHT (5% of amount before VAT)
- −₦50,000
- Amount payable
- ₦1,025,000
₦75,000 VAT is due to the NRS by the 21st of next month.
₦50,000 WHT is a tax credit for you. Ask the client for the credit note.
Free, no sign-up. Estimates based on Nigerian rules as of 2026. Not tax advice. See our terms.
How to calculate VAT and WHT on an invoice
Add VAT to the amount before VAT, then deduct withholding tax, which is also calculated on the amount before VAT, never on the VAT.
- 1
Start with the amount before VAT
The value of your services or goods.
- 2
Add VAT at 7.5%
Amount × 7.5% = VAT. Amount + VAT = invoice total.
- 3
Work out WHT on the amount before VAT
5% for consultancy, professional, technical and management fees; 2% for supply of goods and construction; 10% for rent, interest and dividends.
- 4
Subtract WHT from the total
Invoice total − WHT = what the client pays. Show both on the invoice to avoid disputes.
- 5
Collect the WHT credit note
The WHT deducted is a credit against your own income tax, but only with the credit note.
Worked example: ₦1,000,000 consultancy invoice
| Amount before VAT | ₦1,000,000 |
|---|---|
| VAT (7.5%) | ₦75,000 |
| Invoice total | ₦1,075,000 |
| WHT (5% of ₦1,000,000) | −₦50,000 |
| Client pays | ₦1,025,000 |
Questions
How do I calculate WHT on an invoice?
Multiply the amount before VAT by the WHT rate (5% for consultancy and professional fees to residents), then subtract it from the invoice total. WHT is never calculated on VAT.
What WHT rate applies to consultancy fees in Nigeria?
5% for Nigerian residents under the 2024 withholding regulations. Supply of goods and construction contracts are 2%, and rent, interest and dividends 10%.
Is WHT an extra cost?
No. WHT is an advance payment of your income tax. Use the credit note to offset it against your own tax.
Related guides
- Withholding tax in Nigeria 2026: rates, credit notes and how to use WHT credits
- How to write a professional invoice in Nigeria (VAT invoice checklist)
- VAT in Nigeria for service companies: when to charge it, input VAT and filing (2026)
Stop calculating this by hand
BizBooks adds VAT and WHT to every invoice, shows the amount payable, and tracks WHT credits and VAT deadlines.
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