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Implementation from 2026: Nigeria’s new VAT rules for non-resident providers of digital services will begin on 1 January 2026, under the Nigeria Tax Act 2025, allowing foreign suppliers time to prepare.
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Registration obligations: Non-resident providers supplying taxable goods or services to Nigerian consumers must register for VAT, charge 7.5% VAT on invoices, and remit it to the Nigeria Revenue Service (NRS).
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Scope of services: Liable services include streaming, cloud computing, advertising, software, crypto exchanges, and IP rights exploited in Nigeria, reflecting global VAT trends on cross-border digital supplies to consumers.
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Withholding options: Nigerian customers may withhold VAT on payments to non-resident suppliers. Alternatively, NRS can appoint suppliers or platforms as collection agents, shifting compliance burdens onto foreign companies.
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Simplified compliance portal: A new portal will enable VAT registration and reporting for non-resident suppliers exceeding USD 25,000 Nigerian turnover, with payment processors required to provide real-time transaction reporting via API.
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Marketplace and invoicing rules: Marketplaces may bear VAT liability. Registered businesses must issue electronic invoices including supplier TIN, description, VAT liability, and other details, ensuring compliance with Nigerian invoicing obligations.
Source: vatcalc.com
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