Value Added Tax (VAT) is a type of tax that is added to the price of goods and services. In many countries, including some parts of the world, petrol is subject to VAT.

When someone says that there is a 7.5% VAT on petrol, it means that the government has imposed a tax of 7.5% on the price of petrol. For example, if the price of petrol is $2 per liter, then the VAT on it would be 7.5% of $2, or $0.15 per liter. Therefore, the total price of petrol including VAT would be $2.15 per liter.

The government usually collects this VAT from the petrol seller, who passes it on to the end consumer in the form of a higher price. The revenue generated from VAT is used by the government to fund public services, such as healthcare, education, and infrastructure.


IN NIGERIA .[b][/b]

, if the price of fuel in Nigeria is N500 per liter, and there is a 7.5% VAT on petrol, then the VAT on it would be 7.5% of N500, which is N37.50 per liter. Therefore, the total price of petrol including VAT would be N537.50 per liter.

This means that if you buy one liter of petrol in Nigeria at a price of N500, you will have to pay an additional N37.50 as VAT, making the total cost of one liter of petrol N537.50. The petrol seller would collect the VAT of N37.50 and remit it to the government.

I hope this helps to clarify the concept of VAT on petrol in Nigeria.


This is the explanation of VAT

ThompsonJoo:
Value Added Tax (VAT) is a type of tax that is added to the price of goods and services. In many countries, including some parts of the world, petrol is subject to VAT.

When someone says that there is a 7.5% VAT on petrol, it means that the government has imposed a tax of 7.5% on the price of petrol. For example, if the price of petrol is $2 per liter, then the VAT on it would be 7.5% of $2, or $0.15 per liter. Therefore, the total price of petrol including VAT would be $2.15 per liter.

The government usually collects this VAT from the petrol seller, who passes it on to the end consumer in the form of a higher price. The revenue generated from VAT is used by the government to fund public services, such as healthcare, education, and infrastructure.


IN NIGERIA .[b][/b]

, if the price of fuel in Nigeria is N500 per liter, and there is a 7.5% VAT on petrol, then the VAT on it would be 7.5% of N500, which is N37.50 per liter. Therefore, the total price of petrol including VAT would be N537.50 per liter.

This means that if you buy one liter of petrol in Nigeria at a price of N500, you will have to pay an additional N37.50 as VAT, making the total cost of one liter of petrol N537.50. The petrol seller would collect the VAT of N37.50 and remit it to the government.

I hope this helps to clarify the concept of VAT on petrol in Nigeria.


This is the explanation of VAT

You have done well

The rumors surrounding 7.5% VAT per litre is it for real?

What happened to the VAT Court Case filed by Wike and the Lagos state Government?

Only God can save this our 9ja opposition. Seh na so dem go waste another 4 years with all this bunkum?

Where do I start from?

The government wants more money for them selves. Strike out petrol subsidy, stop funding education, impose VAT on fuel. All of these mean more money for government. What will government do with all these money they're accruing?

Your detailed explanation of VAT's application to petrol is greatly appreciated. It serves as a valuable educational resource for individuals seeking to understand the intricacies of taxation on everyday goods. By elucidating how VAT impacts the price of petrol and the subsequent revenue allocation by governments for public services, you've provided valuable insights into the broader economic landscape.
For those interested in further exploring VAT and its implications, resources such as https://thevatconsultancy.com/ offer extensive information and expert guidance. Your contribution to the discussion is immensely valuable, sparking thoughtful discourse and promoting financial literacy.