Invoicing and Tax regulation in Nigeria
Invoice Regulation in Nigeria
In Nigeria, invoicing regulations require that invoices should represent truthful transactions and should include information like date, quantity, price, the goods or services description, and names and addresses of the supplier and customer. For B2B, B2C and B2G businesses, it is mandatory to issue compliant invoices for every deal.
Real-time Reporting / Fiscalization
Real-time reporting or fiscalization is not mandatory in Nigeria. Businesses are, however, encouraged to maintain real-time records of their transactions for transparency and for ease of filing tax returns.
E-invoicing in Nigeria
Although e-invoicing is not a mandatory requirement in Nigeria, it is becoming increasingly common due to its convenience, reduction of paperwork, and quicker processing times. The implementation of e-invoicing can greatly simplify bookkeeping for B2B, B2C, and B2G companies.
VAT/GST/Tax compliance in Nigeria
In Nigeria, Value Added Tax (VAT) compliance is mandatory. It is charged at a standard rate of 7.5% on all goods and services. Both B2B, B2C and B2G are required by the Federal Inland Revenue Service to remit VAT. In terms of tax compliance, companies must fulfil their tax obligations and file returns with the respective tax authorities in a timely manner.