What is the VAT rate in Nigeria?

The standard VAT rate in Nigeria is 7.5%. Small businesses with annual turnover below the ₦25 million threshold are exempt from charging it. The builder applies 7.5% by default and lets you switch VAT off if you are not required to charge it.

What is a TIN and is it required?

A TIN is the Tax Identification Number issued by the FIRS to registered taxpayers. It should appear on business invoices and is required for VAT and tax filings. The builder includes your TIN as a field and an optional client TIN for B2B invoices.

What is withholding tax on an invoice?

Withholding tax (WHT) is an advance tax the client deducts from your payment and remits to the FIRS on your behalf, commonly at 5% or 10% depending on the service. The builder can deduct WHT from the total to show the net amount the client will actually pay you.

How is the amount payable calculated?

The subtotal is the sum of your line items. VAT at 7.5% is added if charged, giving the total. If withholding tax applies, the WHT amount is subtracted from the total to give the amount the client pays you directly, with the WHT remitted to the FIRS.

Is my invoice data uploaded anywhere?

No. The builder runs entirely in your browser and the calculations happen on your device. Nothing you enter is sent to a server, so your client and pricing details stay private.

Nigerian Invoice Builder

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

A clean Nigerian invoice with VAT and withholding tax handled

A Nigerian business invoice should carry your TIN, the right VAT treatment, NGN amounts, and — for many B2B services — a withholding-tax line. This builder collects each field, applies VAT at 7.5 percent when you charge it, optionally deducts withholding tax, and outputs a professional invoice ready to send to your client.

How it works

Each line item is quantity multiplied by net unit price, summed into the subtotal. VAT is the subtotal multiplied by 7.5 percent when charged, and the total is subtotal plus VAT, all in NGN. If the client deducts withholding tax, the builder applies your chosen WHT rate (5 or 10 percent) to the net value and subtracts it from the total to show the amount the client actually pays you — the balance is remitted to the FIRS on your behalf and credited against your tax. Your TIN, the client’s optional TIN, and a bank-details section round out a standard Nigerian invoice.

Tips and example

Include your TIN on every invoice and switch VAT off only if your turnover is genuinely below the ₦25 million registration threshold. A ₦650,000 subtotal at 7.5 percent VAT becomes ₦698,750 total; if the client withholds 5 percent on the ₦650,000 net (₦32,500), you receive ₦666,250 directly and the rest reaches you as a tax credit. Add your bank account name, number, and branch so the client can pay by transfer without asking, and keep your invoice numbers sequential for clean records.