Invoice Template (Nigeria)

An Invoice Template in Nigeria records the goods or services supplied and the amount the recipient is required to pay.

The primary tax requirement for Nigerian invoices is compliance with the Value Added Tax Act (Cap V1, LFN 2004), as amended by the Finance Acts 2019, 2020, 2021, and 2023. VAT at the current rate of 7.5% (increased from 5% by the Finance Act 2019, effective February 2020) must be separately stated on invoices issued by VAT-registered businesses. Under Section 14 of the VAT Act, a VAT-registered supplier must issue a tax invoice showing: the supplier's name, address, and VAT registration number (which corresponds to the Federal Inland Revenue Service (FIRS) Tax Identification Number (TIN)); the recipient's name and address; the invoice date and number; a description of the goods or services; the taxable value (exclusive of VAT); the VAT amount; and the total amount payable (inclusive of VAT).

Every business with an annual turnover of NGN 25,000,000 or more is required to register for VAT under Section 10 of the VAT Act and the Finance Act 2019, which lowered the registration threshold. Small businesses with annual turnover below NGN 25,000,000 are exempt from VAT registration but should note that this threshold is periodically reviewed. The Finance Act 2020 also introduced mandatory e-invoicing through the FIRS e-Invoice platform for large taxpayers — companies in the Integrated Tax Office (ITO) and Large Taxpayers Office (LTO) categories.

Withholding Tax (WHT) is a critical component of Nigerian invoices in business-to-business transactions. The paying party must deduct WHT at prescribed rates (typically 5% for individuals, 10% for companies) from invoiced amounts for specified services under the WHT Regulations, and remit to FIRS within 21 days. The invoice should reference the applicable WHT rate to support correct deduction, and the supplier may credit the WHT deducted against their annual income tax liability using the WHT credit note issued by the paying party.

A Nigerian invoice must include the supplier's TIN issued by FIRS, as required by the Finance Act 2020 for all invoices above NGN 10,000. Invoices issued without a TIN are not admissible as tax deductible expenses by the paying party under the CITA or PITA.

The legal framework governing the Invoice Template (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Invoice Template (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies and Allied Matters Act (CAMA) 2020 sets the foundational requirements.

A properly formatted Invoice Template in Nigeria is required for every commercial transaction involving the supply of goods or services.

An Invoice Template is needed when a VAT-registered business in Nigeria supplies goods or services to a customer and must issue a tax invoice under Section 14 of the VAT Act (Cap V1, LFN 2004) showing the 7.5% VAT separately, the supplier's TIN, and the VAT registration number, to enable the customer to claim input VAT credit.

An Invoice Template is required when a service provider — such as a management consultant, lawyer, architect, or IT firm — bills a corporate client for professional services, and the invoice must include WHT deduction information (typically 10% for company-to-company transactions) and the provider's FIRS TIN for the client's WHT records.

An Invoice Template is needed when a Nigerian exporter prepares a commercial invoice for a foreign buyer — required for Nigeria Customs Service (NCS) export clearance, Form NXP filing at the CBN-approved bank, and NEPC export documentation — showing the FOB or CIF value in USD or other foreign currency.

An Invoice Template is required when a small business or sole trader in Nigeria invoices government ministries, departments, and agencies (MDAs), which require TIN-compliant invoices as a condition of payment under the Treasury Single Account (TSA) payment rules administered by the Office of the Accountant-General of the Federation.

An Invoice Template is needed when a startup or e-commerce business operating through platforms such as Jumia, Konga, or Flutterwave needs standardised invoices for B2B customers that satisfy both VAT compliance and the FIRS e-invoicing requirements for large turnover businesses.

Parties in Nigeria should prepare a Invoice Template (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Nigerian Invoice must contain the following elements for tax, legal, and commercial compliance under the VAT Act (Cap V1, LFN 2004) and the Finance Acts 2019–2023.

Supplier Details: Full legal name of the business or individual, registered address, phone number, email address, FIRS Tax Identification Number (TIN), and VAT registration number (for VAT-registered businesses). Under the Finance Act 2020, invoices above NGN 10,000 must include the supplier's TIN issued by the Federal Inland Revenue Service (FIRS). Companies registered under CAMA 2020 are automatically assigned a TIN through the Corporate Affairs Commission (CAC) and FIRS joint registration system.

Customer and Buyer Details: Full name, address, and (for corporate customers) CAMA 2020 RC number and TIN. For government Ministry, Department and Agency (MDA) customers, the MDA's government account code under the Treasury Single Account (TSA) system administered by the Office of the Accountant-General of the Federation is required for payment processing.

Invoice Number: A unique, sequential invoice reference number for accounting and audit trail purposes. The Finance Act 2020 and FIRS e-invoicing guidelines require all large taxpayers in the Integrated Tax Office (ITO) and Large Taxpayers Office (LTO) categories to use FIRS-issued e-invoice numbers through the FIRS e-Invoice platform.

Invoice Date: The date of issue (DD/MM/YYYY), which also starts the clock on the payment terms. For VAT purposes, the tax point — the date on which VAT becomes due — is the earlier of the date of supply or the date of payment under the VAT Act.

Description of Goods and Services: A clear description of each item supplied, the quantity, unit price, and line total in Nigerian Naira (NGN) or agreed foreign currency. For export invoices, the CBN Form NXP reference and the Nigeria Customs Service (NCS) export declaration number should be cited.

Subtotal Exclusive of VAT: The total value of goods or services before VAT, as required by Section 14 of the VAT Act (Cap V1, LFN 2004) for VAT-registered suppliers.

VAT Amount: For VAT-registered suppliers, the VAT at 7.5% (as increased by the Finance Act 2019 from the previous 5% rate) of the taxable value, shown separately. VAT-exempt supplies — including basic food items, medical products, educational materials, and exported goods — must be clearly marked as exempt. Input VAT credits claimed by the buyer require a properly completed tax invoice from a FIRS-registered supplier.

Withholding Tax Reference: The applicable WHT rate under the Companies Income Tax Act (CITA, Cap C21, LFN 2004) WHT Regulations — 10% for management, consultancy, and technical service fees paid to companies; 5% for the same paid to individuals; 5% for construction contracts — for the paying party to deduct and remit to FIRS within 21 days of payment. The invoice should state the net amount payable after WHT deduction and confirm the supplier's TIN for WHT credit note issuance by the paying party.

Total Amount Payable: The gross total including VAT, or the net total after WHT deduction where applicable, stated in NGN. For foreign currency invoices, the CBN official exchange rate applicable on the invoice date should be stated for Naira conversion.

Payment Terms and Bank Details: The due date for payment (e.g., '30 days from invoice date'), the bank account details (bank name, NUBAN account number, account name, and for international payments, SWIFT code and IBAN), and any late payment interest provisions. Payments through the NIBSS Instant Payments (NIP) platform or NIBSS Electronic Funds Transfer (NEFT) should be referenced.

Purchase Order Reference: The buyer's purchase order (PO) number, where applicable, for reconciliation purposes. MDAs require PO references for payment processing under Federal Government procurement rules administered by the Bureau of Public Procurement (BPP) under the Public Procurement Act 2007.

Data Protection: Invoices containing personal data of individual customers must comply with the Nigeria Data Protection Regulation (NDPR) 2019 administered by the Nigeria Data Protection Commission (NDPC) and the Nigerian Data Protection Act 2023 (NDPA), requiring a lawful basis for processing.

Forms-legal.com provides this Invoice Template as a starting point for FIRS-compliant invoicing in Nigeria. Businesses should confirm current VAT rates, WHT rates, and e-invoicing requirements with FIRS before issuing invoices.