Nigeria Tax Act, 2025 · NTA s.185
Supplies that carry no VAT at all
Exempt supplies are outside VAT — you do not charge it, and you cannot reclaim the VAT on what you bought to make them.
Who this lands on: Anyone supplying land, buildings, money, securities or the other exempt items.
The Act exempts, among others: land or buildings and interests in them; money, stakes and securities; government licences; shared passenger road transport; baby products; locally manufactured sanitary towels; assistive devices for disability; and goods for humanitarian donor-funded projects (NTA s.185(1)).
Also exempt: agricultural tractors, ploughs and equipment; supplies consumed by an approved entity in a free trade or export processing zone on its approved activity; and supplies to diplomatic missions.
Exempt is not the same as zero-rated. On an exempt supply you charge nothing and you cannot recover the input VAT behind it, so it stays a cost.