Previously, Nigeria introduced a provision for non-resident digital businesses to apply VAT on their B2C invoices to customers in Nigeria. The original intention was for these customers to then remit the VAT to the tax authorities. However, there were significant issues, including the non-collection of VAT, with this approach. As a result, affected digital businesses now need to register for VAT in Nigeria and collect and remit the tax on their B2C and B2B sales. Based on this registration, the businesses collect and remit VAT (at a rate of 7.5%, a rate raised from 5% in February 2020) on their sales to customers in Nigeria.
Source: taxamo.com
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