VAT Invoice Format in Nigeria: A Simple Guide
Charging VAT the right way keeps you compliant with FIRS and makes your business look professional. This guide explains the correct VAT invoice format for Nigeria and shows you how to calculate 7.5% VAT accurately.
What is VAT in Nigeria?
Value Added Tax (VAT) in Nigeria is currently 7.5%. It is a consumption tax added to the price of goods and services. Registered businesses collect VAT from customers and remit it to the Federal Inland Revenue Service (FIRS) or the relevant state tax authority.
When must you issue a VAT invoice?
You should issue a VAT invoice whenever you sell goods or services to a customer who is charged VAT. It is especially important for B2B sales because corporate clients need a proper VAT invoice to claim input VAT. Even if you are not yet VAT-registered, formatting your invoice correctly now saves you from rework later.
Required information on a Nigerian VAT invoice
- Seller's name, address, and TIN (Tax Identification Number)
- Buyer's name, address, and TIN (if applicable)
- Unique invoice number and issue date
- Description of goods or services supplied
- Quantity and unit price of each item
- Subtotal before VAT
- VAT amount (7.5% of the subtotal)
- Total amount payable including VAT
How to calculate 7.5% VAT
VAT is calculated on the subtotal, not on the total. For example, if your subtotal is ₦100,000:
Always show VAT as a separate line so your client can see exactly what they are paying and claim it back if they are registered.
Important note
Tax rules can change. This guide is for general invoicing purposes and does not replace advice from a qualified tax professional or FIRS directly.
Use a VAT-ready invoice template
NaijaInvoice automatically adds a 7.5% VAT line to your invoices, calculates totals, and formats the PDF cleanly. It is the easiest way to stay compliant without doing manual math every time.
Create a VAT-compliant invoice
Use our free invoice builder with VAT already built in.
Create VAT invoice