- Nigeria is introducing the Merchant Buyer Solution (MBS) to transform tax administration.
- MBS is an electronic invoicing system led by the Federal Inland Revenue Service.
- Announced in November 2024, it aims to improve tax compliance and transparency.
- The pilot phase is set for July 2025, offering opportunities for e-Invoicing providers.
- Businesses need to understand the system’s scope and requirements for compliance.
- The rollout is phased, starting with a pilot on July 1, 2025, for select large taxpayers.
- The timeline depends on presidential approval of tax bills.
- Businesses must adopt systems with specific technical standards.
- E-invoices must use XML or JSON formats with 55 mandatory fields.
- Invoices require pre-clearance and must be reported within specific timeframes.
- Integration with the MBS platform is via RESTful APIs.
- Invoices are secured with AES-256 encryption and other security measures.
- The system supports all currencies for international trade.
- The MBS mandate is based on several legal frameworks.
- Non-compliance results in severe penalties.
- Large taxpayers should ensure system readiness and participate in the pilot.
- Medium and small enterprises should prepare by January 2026.
Source: taxilla.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
