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
When a customer pays less than your invoice because it deducted withholding tax (WHT), the shortfall should be recorded as tax paid on your behalf, not as a bad debt, and you need the customer's WHT receipt (still widely called a credit note) to use it against your own tax. Under the 2024 WHT Regulations, as summarised by PwC, the customer issues that receipt and remits the tax by set deadlines. The Finance agent on a Pryme Business Account matches short payments to invoices, labels likely WHT, and keeps a list of receipts still to chase.
Why your customer paid less than the invoice
Many Nigerian companies and government bodies deduct WHT from payments to suppliers and pay it to the tax authority. The supplier receives the invoice amount minus the deduction. That deduction is not lost money: it is an advance payment of the supplier's own income tax, provided the supplier can prove it.
The Deduction of Tax at Source (Withholding) Regulations 2024 took effect on 1 July 2024. PwC's summary lists rates by type of payment and recipient. A few that small suppliers meet most often (resident recipients):
| Type of payment | Company recipient | Individual recipient |
|---|---|---|
| Supply of goods (not by the manufacturer) | 2% | 2% |
| Other services | 2% | 2% |
| Commission and professional fees | 5% | 5% |
| Rent, hire and lease | 10% | 10% |
| Construction of roads, bridges, buildings, power plants | 2% | 2% |
| Other construction and related activities | 5% | 5% |
PwC also notes a small-company exemption: a paying company that qualifies as small need not deduct where the transaction is below ₦2,000,000 and the supplier has a valid TIN, and suppliers without a TIN face double the rate. The Nigeria Tax Act 2025 and related laws took effect in January 2026, so check with the Nigeria Revenue Service (NRS, formerly FIRS) or an adviser whether any rate has changed since. This is information, not tax advice.
Recording a short payment correctly
The mistake many businesses make is leaving the shortfall as an unpaid balance on the customer's account, or writing it off. Either way the books are wrong, and the tax credit is forgotten.
Worked example
Example only. You invoice a corporate client ₦2,150,000: ₦2,000,000 for consulting services plus ₦150,000 VAT at 7.5%. The client deducts 5% WHT on the ₦2,000,000 fee (WHT is normally worked on the amount before VAT; confirm this for your contract) and pays ₦2,050,000.
- Invoice total
- ₦2,150,000
- Cash received
- ₦2,050,000
- Difference
- ₦100,000
- Record as
- WHT receivable (tax credit), pending receipt
- Customer balance after posting
- ₦0
The invoice is closed. A separate line now shows ₦100,000 of WHT that the business can use against its income tax once it holds the receipt.
Gaps that are not WHT
Not every short payment is tax. A customer may have deducted a disputed delivery, paid an old price, netted off a credit note, or simply made a typing error. If the gap does not match a WHT rate on the pre-VAT amount, treat it as an open query with the customer rather than forcing it into the WHT line. Mixing the two makes the year-end tax credit look larger than the receipts can support.
Receipts, credit notes and who issues what
Older practice was for the tax authority to issue WHT credit notes. PwC's summary of the 2024 Regulations says the customer, as the person deducting, issues the WHT receipt to the vendor, and that a customer who issues a receipt for tax it did not remit is liable for that tax with interest and penalties. PwC adds that vendors get credit on presenting the receipt whether or not the customer remitted, and advises keeping every receipt and submitting them so they can be updated on the tax portal.
On remittance, PwC lists: to the federal tax authority by the 21st of the following month, and to state revenue services by the 30th of the following month. That gives you a sensible date to start chasing: if no receipt has arrived a few weeks after those dates, ask.
How the Finance agent tracks it
The Finance agent on a Pryme Business Account works from the invoices and payments on the account. It prepares; a person decides.
- Matches each incoming payment to its invoice and calculates the gap.
- Where the gap matches a common WHT rate on the pre-VAT amount, labels it as likely WHT and proposes the posting; other gaps are flagged as disputes or errors for a person to look at.
- Keeps a WHT register: customer, invoice, amount deducted, rate, date paid, receipt received yes or no.
- Drafts a polite request for missing receipts, with invoice numbers and amounts, for someone to send.
- Sums the receipts held at year end so your accountant can apply them against the income tax return.
Approvals above the ceiling you set go to a named person, and each action is recorded, so you can see later who agreed to treat a gap as WHT.
What to check first
- Does the contract or purchase order say WHT will be deducted, and at what rate?
- Was the deduction made on the amount before VAT?
- Does the customer have your correct name and TIN, so the receipt is usable?
- Is the receipt for the right period and amount?
For the invoicing side, see withholding tax on invoices and what to do when a customer pays less than the invoice.
Where Pryme fits
If you invoice through Pryme invoicing and receive payment into the same Business Account, the Finance agent can keep the WHT register current without anyone retyping amounts, and the Chief of Staff can remind the owner when receipts are overdue. The tax decisions remain yours and your accountant's.
Questions people ask
My customer deducted 5% from my invoice, is that legal?
It can be. The 2024 WHT Regulations, as summarised by PwC, set 5% for commission and professional fees to resident recipients. Check the payment type and whether the small-company exemption applies.
Who issues WHT credit note now in Nigeria?
PwC's summary of the 2024 Regulations says the customer who deducted the tax issues the WHT receipt to the vendor. Keep each one for your tax return.
Is WHT deducted before or after VAT?
It is normally calculated on the amount before VAT. Confirm with your contract, the customer and your adviser.
What if the customer never sends the WHT receipt?
Chase it in writing with invoice numbers and amounts. Without it, using the deduction as a tax credit is difficult. The Finance agent can draft the request for you to send.
Sources
- PwC Nigeria: Highlights of the Deduction at Source (Withholding) Regulations 2024 (Jul 2024) · accessed Oct 2026
- Forvis Mazars: Nigeria's tax reform in focus – 2025 NTA VAT key business changes (16 Mar 2026) · 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.