VAT Guide for E-Commerce in Nigeria

    E-Commerce operating in Nigeria charge the standard VAT rate of 7.5%. Registration becomes mandatory at NGN 25,000,000 (~€30,000), returns are filed monthly, and cross-border movements of goods can trigger local registration or OSS reporting.

    Standard rate7.5%
    Reduced ratesNone
    Registration thresholdNGN 25,000,000 (~€30,000)
    Filing frequencyMonthly
    CurrencyNGN
    In force since01 Feb 2020
    Last verified01 Sept 2026

    Official source

    Federal Inland Revenue Service

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in Nigeria

    You invoice a customer based in Nigeria for NGN 1,000.00 of e-commerce work.

    Add 7.5% VAT: NGN 75.00. Total invoiced NGN 1,075.00, declared in your monthly return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same NGN 1,000.00 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    Sales to consumers in another EU country

    You sell NGN 12,000.00 per year to private customers in other member states.

    Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.

    Late filing exposure

    Your monthly return is filed after the deadline.

    NGN 50,000 for first month late, NGN 25,000 each subsequent month. 10% penalty on unpaid tax.

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    Compliance checklist

    • Confirm whether you are above NGN 25,000,000 (~€30,000)
    • Register with Federal Inland Revenue Service before your first taxable supply
    • Apply 7.5% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly and archive invoices for the statutory period
    • VAT rate increased from 5% to 7.5% in 2020
    • Non-resident digital service providers must register

    FAQ — E-Commerce in Nigeria

    When must e-commerce register for VAT in Nigeria?

    Registration is required at NGN 25,000,000 (~€30,000). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to e-commerce in Nigeria?

    The standard rate is 7.5%. Applied since 2020-02-01, last verified against Federal Inland Revenue Service on 2026-09-01.

    How often do I file VAT returns in Nigeria?

    Monthly. NGN 50,000 for first month late, NGN 25,000 each subsequent month. 10% penalty on unpaid tax.

    What must appear on an invoice in Nigeria?

    VAT invoices must show TIN, description, VAT amount. Electronic filing through FIRS TaxPro Max.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to Nigeria for my sector?

    VAT rate increased from 5% to 7.5% in 2020 · Non-resident digital service providers must register · FIRS TaxPro Max electronic filing platform

    Go further

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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