The study examined the impact of value added Tax on Economic Growth in Nigeria. Particularly, it is an investigation of value added tax variables (input tax and output tax) and their significant Influence on Economic growth in Nigeria. The study adopted a longitudinal research design. Secondary time series panel data were collected for the period 2009 to 2018 from the statistical Bulletin of the Central Bank of Nigeria (CBN). The data were analyzed using coefficient of determination (R2), t-test, F-test and Durbin Watson statistics. The dependent variable economic growth was proxy with gross domestic products (GDP), which was regressed as a function of input Tax and output Tax (independent variables).Two hypotheses were formulated and tested. The results of the analysis shared that both input tax and output tax have positive and significant impact on economic growth. The result shows that VAT contributes significantly to the total tax revenue of government and by extension the economic growth of Nigeria. VAT revenue growth had consistent increase though it was not that explosive. To boost tax revenue, VAT should be sustained and boosted. Based on the findings, the study recommended that government should block every Value Added Tax revenue leakage, sensitizing the managers of companies operating in Nigeria on the need to remit the VAT revenue collected, proper training of the Federal Inland Revenue staff in charge of VAT revenue collection and finally, putting in place measures to effectively utilize generated VAT revenue for infrastructural and economic development.
Keywords: Value added tax, Input tax, Output tax, Economic growth, Gross Domestic Product