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
An invoice to a client in Nigeria is issued as an Italian electronic invoice in XML and sent through the Sistema di Interscambio (SdI) with the recipient code XXXXXXX, then a PDF copy goes to the client by email. For services to a business client outside the EU, the invoice carries no IVA, Natura code N2.1 and the annotation "operazione non soggetta", and is issued by the 15th of the month after the service is performed.
Why a Nigerian client still gets an Italian e-invoice
Your client in Lagos cannot receive an invoice through the SdI, and does not need to. The electronic invoice exists for the Italian tax authority. Since 1 July 2022, Euroconference News explains, data on transactions with foreign counterparties is sent invoice by invoice through the SdI, replacing the old quarterly "esterometro" return. You prepare the XML file as for an Italian client, change a few fields, and send the client a readable copy separately.
The fields that change for a client in Nigeria
| Field in the XML | What to enter | Source |
|---|---|---|
| Codice destinatario | XXXXXXX (seven X characters) | Euroconference News; TeamSystem |
| IdPaese of the client | NG, the country code for Nigeria | TeamSystem |
| IdCodice of the client | An identifier for the client, such as its tax ID | TeamSystem |
| CAP (postcode) | 00000 where there is no Italian postcode | TeamSystem |
| Natura of the line | N2.1 for a B2B service not subject to IVA under art. 7-ter | Euroconference News |
| Annotation | "operazione non soggetta", art. 21, c. 6-bis, lett. b, DPR 633/1972 | Euroconference News |
For the client's identifier, a Nigerian company's Tax ID or its CAC registration number are the natural choices; ask the client which they want shown and use the same one on every invoice.
What the client receives
Send a courtesy copy, as PDF or on paper, after the file has gone through the SdI, as TeamSystem describes. Many Nigerian finance teams expect the details they use for their own records and for withholding tax, so make the PDF complete:
- Your name, Italian address and partita IVA.
- The client's registered name and address in Nigeria, and its Tax ID if it gave you one.
- Invoice number and date, matching the XML file.
- A clear description of the service and the period it covers.
- The amount and currency agreed in the contract, and your payment details.
- The non-taxable annotation, so the client can see why there is no IVA.
Ask the client to send its withholding tax receipt with each payment if it deducts Nigerian tax. Under the 2024 Nigerian regulations, according to Mondaq, the receipt should show your name and address, the nature of the transaction, the gross amount, the tax deducted and the month.
Deadlines
A service counts as performed when it is completed, or earlier on the date of payment for any amount paid in advance. The invoice for a service to a business client outside Italy must be issued "entro il giorno 15 del mese successivo" to the month the operation is performed, and the file must reach the SdI within that issue deadline, both sources explain.
Example, for illustration only: you deliver a website to an Abuja client on 20 March and are paid on 2 April. The operation is performed on completion in March, so the invoice is due by 15 April. If the client had paid a deposit on 10 February, the deposit would need its own invoice by 15 March.
Stamp duty and currency
An invoice without IVA above €77.47 carries €2 stamp duty, payable virtually by ticking the box in the XML. Euroconference News notes that invoices sent with the XXXXXXX code are not in the list the Agenzia delle Entrate prepares for stamp duty, so add them to your own count. If you invoice in dollars or naira, your commercialista will also need the euro value for your records.
Steps
- Agree in the contract the currency, whether the fee is gross or net of Nigerian withholding, and who pays bank charges.
- Create the XML invoice with XXXXXXX, country code NG, the client identifier and Natura N2.1.
- Add the annotation and the stamp duty flag if the total is above €77.47.
- Send it through the SdI by the 15th of the following month.
- Email the PDF copy and ask for the withholding receipt if tax is deducted.
If the client pays short
A payment that arrives below the invoice total is common with Nigerian clients, and it usually has one of three causes: withholding tax deducted at source, bank charges taken by an intermediary bank, or a conversion done by the client at a rate you did not agree. Each needs a different answer. Withholding is resolved by the client's receipt, which you keep with the invoice. Bank charges are a contract point: say who bears them. A conversion shortfall is avoided by invoicing in the currency you want to receive and asking the client to pay in that currency. Do not issue a new invoice for the lower amount; the invoice records what was agreed, and your records explain the difference.
Where Pryme fits
Pryme's invoicing lets a Business Account send a client a payment request with euro, dollar or naira details, so the money arrives in the currency on the invoice; see business multicurrency. A verifiable receipt produced with VerifyDoc.ai can be checked by the client's auditors. On the wording, see invoice wording for a Nigerian client.
Questions people ask
What codice destinatario do I use for a client in Nigeria?
XXXXXXX, seven capital X characters, which tells the SdI the recipient is a foreign counterparty, as Euroconference News explains.
Do I need to send an e-invoice for a foreign client?
Since 1 July 2022 the data must go through the SdI invoice by invoice, replacing the quarterly esterometro, according to Euroconference News. The client receives a PDF copy.
When must I invoice a Nigerian client?
For services to a business client abroad, by the 15th of the month after the service is completed or paid for.
Is there stamp duty on an invoice to Nigeria?
Yes, €2 if the invoice has no IVA and is above €77.47. Invoices with code XXXXXXX are not in the Agenzia's pre-prepared stamp duty list, so track them yourself.
Sources
- Euroconference News: Operazioni con l'estero e fatturazione elettronica dal 1° luglio 2022 (8 Jun 2022) · accessed Oct 2026
- Euroconference News: Forfettari e servizi con l'estero dal 1° luglio 2022 (7 Jun 2022) · accessed Oct 2026
- TeamSystem: Fatturazione elettronica verso l'estero · accessed Oct 2026
- Mondaq: An overview of the Nigerian Withholding Tax Regulations of 2024 (Jul 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.