Nigeria: VAT obligations for B2C and B2B digital supplies from non-residents

Earlier in January 2021, the Nigerian tax authorities implemented new VAT rules, according to which non-resident digital services were obliged to pay a provision and apply VAT on their B2C invoices in Nigeria.

The intention was for customers to then remit the VAT to the tax authorities. This approach however raised significant issues such as the non-collection of VAT.

As a result, affected digital businesses need to register for VAT in Nigeria, collect and remit the tax on their B2C and B2B sales at a rate of 7.5% (grew by 2.5% in comparison to February 2020).