Nigeria to Enforce VAT on Non-Resident Digital Services from 2026

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.
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).
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.
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.
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.
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.