Nigeria’s VAT Compliance Rules for Non-Resident Digital Service Providers: Key Frameworks and Guidelines

• Nigeria updated its tax framework for non-resident digital service providers with the Finance Act 2020, focusing on VAT compliance.
• Initial reforms mainly covered B2B transactions, leaving B2C transactions under-taxed and causing revenue loss.
• The Guidelines on Simplified Compliance Regime for Non-Resident Suppliers (2021) clarified VAT obligations for non-resident digital service providers.
• Non-resident providers must register for VAT if their turnover exceeds USD 25,000 in 12 months or if the Revenue Authority determines they have a substantial economic presence.
• The Revenue Authority can mandate VAT registration and backdated VAT payments from non-resident providers once thresholds are met.

Source: 1stopvat.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.

---

---