The report VAT in Africa: Digital Services 2026, shared on October 21, 2026, includes the VAT framework established in Nigeria for digital service providers among 31 countries. It elaborates in a highly formidable manner that there are more than a few doubts when it comes to the e-invoicing rules and requirements applicable to non-resident service providers.
Non-resident digital service providers are in most of the instances obliged to register for VAT in Nigeria, when they make B2C supplies, and when they surpass the fixed threshold for this sort of supplies. For B2B transactions, if registered non-resident digital service providers voluntarily, could often leave the reporting and remitting obligation to domestic taxable persons.
Nigeria VAT on Digital Services
Under the Nigeria Tax Act, Nigeria mandated the introduction of the VAT regime for non-resident service providers. Non-resident service providers should register for VAT when they make B2C supplies, when they surpass the threshold, or when the Nigeria Revenue Service indicates that they have the position of Significant Economic Presence(SEP) in accordance with the Income Tax Act.
Non-Resident Digital Service Providers
Nigeria belongs to the group of African countries that are embracing high-expectation technology in countries’ state tax matters. One of the key parts of this digitalization trend is the cross-country implementation of the e-invoicing regime.
This practically means that non-resident digital service providers could also be responsible for adherence to the e-invoicing regime, alongside the VAT regime.
Compliance Nigeria VAT
Nigeria’s e-invoicing regime could be applicable also to non-resident digital service providers. To avoid a “high” level of uncertainty, it’s recommended to address the framework with scrutiny to avoid any potential fines and penalties that follow a non-compliant approach to e-invoicing.
Digital Service Providers
VAT regime on non-resident digital service providers exists, and its applicable to the most of the foreign providers. The concept of SEP could also trigger the CIT responsibility for non-resident service providers. Now, the e-invoicing regime could be part of the compliance framework.
For NRDSPs that have sourced income from Nigeria above USD 25,000, it is advisable to diligently review provisions that are part of these sub-compliance frameworks.