Section 186 Nigeria Tax Act 2025

Section 186 of the Nigeria Tax Act 2025 is about Exempt supplies. It provides as follows:

(1) The following supplies are exempt from the VAT imposed under Chapter Six of this Act –
(a) oil and gas exports;

(b) crude petroleum oil and feed gas for all processed gas;
(c) goods purchased for use in humanitarian donor funded projects;

(d) baby products;
(e) locally manufactured sanitary towels, pads or tampons;

(f) military hardware, arms, ammunitions and locally manufactured uniforms supplied to armed forces, para-military and other security agencies of a Nigerian government;
(g) shared passenger road-transport service;

(h) purchase, hire, rental or lease of tractors, ploughs and other equipment used for agricultural purposes.
(i) supplies consumed by an approved entity in the export processing or free trade zones, provided that the supplies are consumed on its approved activity;

(j) 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;

(k) plays and performances conducted by educational institutions as part of learning;
(l) land or building including interest in land or building;
(m) money or securities including interest in money or securities;

(n) Government licences; and
(o) Assistive devices and disability-related products including hearing aids, wheelchairs, and braille materials.

(2) Notwithstanding the provisions of Chapter Six of this Act, VAT shall not be collected on the items specified in paragraph 1 of the Eleventh Schedule to this Act except where the Minister by an order, published in the Official Gazette, specifies the date of collection of VAT on the items listed in the order.

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