AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Invoice in the currency you agree with the client (AUD, USD or naira), show your name and ABN, and state clearly whether GST applies. The ATO says a supply of a service is usually GST-free if the recipient is outside Australia, so a GST-registered freelancer billing a client in Nigeria normally shows GST of nil, subject to the ATO's specific rules. If you are not registered for GST, do not call the document a tax invoice or charge GST.
Design, software, writing, consulting and accounting work flows from Lagos and Abuja to Nigerians in Australia every day. The work is easy to deliver; the invoice is where questions pile up. Which currency? Does GST apply? Will the client deduct Nigerian tax? This guide takes them in the order you meet them.
Pick the invoice currency before you start
Agree the currency in the contract, not on the invoice. Each choice puts the exchange-rate risk on someone:
| Invoice in | Who carries the rate risk | Watch for |
|---|---|---|
| AUD | The client | Nigerian clients must buy AUD, which can be slow; many will ask to pay USD instead |
| USD | Shared | You convert USD to AUD; the client may find USD easier to source in Nigeria |
| Naira | You | The naira can move a lot between invoice and payment; your income is AUD for the ATO |
If you invoice in naira, add a clause on what happens if payment is late (for example, a revised amount if the naira moves past a set point). For how currency choice plays out, see pricing in USD or naira.
What goes on the invoice
If you are registered for GST
The ATO's tax invoice page (updated 18 September 2026) says a tax invoice for a sale under $1,000 must show:
- That the document is intended to be a tax invoice.
- Your identity and your ABN.
- The date of issue.
- A brief description of what you supplied, with quantity and price.
- The GST amount, or a statement that the total includes GST where GST is exactly one-eleventh.
- The extent to which each sale is taxable.
For a sale of $1,000 or more, it must also show the buyer's identity or ABN. A Nigerian company has no ABN, so use its registered name and, ideally, its CAC registration number. You must give a tax invoice within 28 days if the customer asks, except for sales of $82.50 or less including GST.
If you are not registered for GST
Issue a plain invoice. Show your name, ABN, the client, date, description, amount and payment details, and do not add GST or call it a tax invoice. For whether you need an ABN at all when every client is in Nigeria, see ABNs for Nigeria-only clients.
GST on services to Nigeria
The ATO's GST-free sales page says other exports, including services, cover supplies of things other than goods for consumption outside Australia, and that "a supply of a service is usually GST-free if the recipient of the service is outside Australia". It adds that specific rules decide whether a supply is GST-free (the ATO points to GSTR 2019/1), so a Nigerian client with staff or a branch in Australia needs a closer look.
Two consequences follow. First, a GST-registered freelancer still claims credits for GST in purchases used to make those GST-free sales, according to the same page. Second, when you work out whether you must register, the ATO's registration page says GST turnover excludes "sales not connected with Australia", and the threshold is $75,000 (register within 21 days of passing it). Our article on GST on services to Nigerian clients covers the detail.
Nigerian withholding tax
A Nigerian company paying you may deduct withholding tax before sending the money. PwC's summary of the Deduction at Source (Withholding) Regulations 2024 lists 10% on professional, consultancy, technical and management fees paid to non-residents, described as a final tax, with the payer issuing a receipt for the amount deducted. Check whether that rate still applies after the 2025 tax laws took effect and agree in the contract whether your fee is gross or net. Ask for the receipt every time; see withholding tax when a Nigerian client pays you.
Worked example (illustrative figures)
Example only: you invoice a Lagos company US$2,000 for a website. The contract says the fee is gross. The client deducts 10% (US$200) and pays US$1,800, sending you a deduction receipt. You report the full US$2,000 converted to AUD as income in Australia, and keep the receipt; whether you can claim a foreign income tax offset for the US$200 depends on ATO rules on Nigerian tax paid.
Steps for each new Nigerian client
- Confirm the client's legal name and CAC number.
- Agree currency, fee (gross or net of withholding tax) and payment terms in writing.
- Decide whether the supply is GST-free and show GST correctly.
- Number invoices in sequence and keep copies with proof of payment.
- Record the AUD value on the day received for your books.
Where Pryme fits
A Pryme Business Account, opened from Australia, holds naira, US dollars, pounds and euros (not Australian dollars) with local account details, so a Nigerian client can pay naira locally or dollars. You send invoices from the app (invoicing) and convert with Swap when you choose; the app shows the rate and the fee before you approve. Pryme does not issue ABNs or give tax advice.
Questions people ask
Do I charge GST to a Nigerian client?
Usually not. The ATO says a service is usually GST-free if the recipient is outside Australia, though specific rules apply.
Can I invoice a Nigerian client in naira from Australia?
Yes, if the client agrees. You carry the exchange-rate risk, and you report the AUD value as income.
What does an Australian tax invoice need to show?
Per the ATO: that it is a tax invoice, your identity and ABN, the date, a description, quantity and price, the GST amount and the extent each sale is taxable; buyer identity too at $1,000 or more.
Why did my Nigerian client pay less than the invoice?
They may have deducted Nigerian withholding tax. PwC's summary of the 2024 regulations lists 10% on professional fees paid to non-residents; ask for the deduction receipt.
Sources
- ATO: Tax invoices · accessed Oct 2026
- ATO: GST-free sales · accessed Oct 2026
- ATO: Registering for GST · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction at Source (Withholding) Regulations 2024 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.