Nigeria VAT non-resident digital services 2026

For the first time, non-resident persons (NRPs) supplying taxable goods and services to Nigerian consumers will be required to register for VAT, charge it on their invoices, and remit it to the Nigeria Revenue Service (NRS). This brings Nigeria into line with a global trend of extending VAT to cross-border digital supplies. This includes the use of the B2B reverse charge – a non-resident provider does not charge to charge VAT to their business customer.

What digital services liable to Nigerian VAT?

FIRS makes the following definitions:

The scope of the new rules is broad. Digital services such as streaming platforms, cloud computing, online advertising, software subscriptions, and even crypto exchanges will fall within the VAT net if they serve Nigerian users. The law also extends to incorporeal property rights, such as intellectual property, when exploited in Nigeria.

Alternative withholding tax options

To strengthen enforcement, the Act introduces withholding and collection mechanisms. In many cases, Nigerian customers will be obliged to withhold VAT on payments to foreign suppliers and remit it directly to the NRS. However, the NRS may also appoint non-resident suppliers or digital platforms as collection agents. In such cases, the withholding obligation shifts away from Nigerian consumers, streamlining compliance but also placing a heavier administrative burden on non-resident companies.

The legislation keeps the VAT rate at 7.5% but clarifies when VAT becomes due, covering everything from single invoices to periodic subscriptions. It also provides special rules for barter transactions, imports, and construction or rental agreements to ensure consistent tax treatment across sectors.

New Compliance Regime portal to be launched

A Simplified Compliance Regime portal is being rolled out to support registration and reporting for non-resident suppliers. Businesses with more than USD 25,000 annual turnover from Nigeria will be required to register, collect, and remit VAT through this system. Payment processors and platforms will also face new obligations, including real-time transaction reporting via API integration with the NRS.

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Marketplace liabilities

In addition to the underlying suppliers, marketplaces and similar intermediaries may be held responsible for the VAT liabilities. This would require them to VAT register, collect and remit the taxes from Nigerian customers.

Invoicing obligations

Nigeria expects VAT registered business to issue compliant electronic invoices – note an application may be made for delaying this obligation – which should include the following:

• Name and TIN of the supplier
• Description of the goods or digital services
• Date
• Value
• VAT liability

VAT Calc’s VAT Filer can accurately populate Nigerian or other country VAT return with verified data from our VAT Calculator or VAT Auditor services

Determining if Nigerian VAT is due

Any provider or liable intermediary must establish if the place of consumption is Nigeria, and VAT therefore due. They may reply on the following:

• Customer billing address
• Customer incorporated in Nigeria
• Nigerian IP address
• Any other similar evidence