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
Nigerian VAT is charged at 7.5%. A non-resident supplier of services into Nigeria that the NRS has appointed (as with non-resident digital companies) must charge, collect and remit VAT itself; where a supplier does not issue a Nigerian tax invoice, the Nigerian business customer accounts for the VAT under the reverse charge, according to PwC's Nigeria summary reviewed in May 2026. If your Italian company has a taxable presence in Nigeria, registration questions go further, so take advice before selling at scale.
The basics
VAT in Nigeria is administered by the Nigeria Revenue Service (NRS), which replaced the FIRS. PwC's Worldwide Tax Summaries for Nigeria, reviewed on 29 May 2026, give the standard rate as 7.5% (it rose from 5% on 1 February 2020). Two rules in that summary matter most to a foreign seller:
- Appointed non-resident digital companies charge, collect and remit VAT to the NRS on their supplies to Nigerian customers.
- For services supplied by a non-resident without a tax invoice, a reverse charge applies: the Nigerian customer accounts for the VAT.
The same summary says exported services are zero-rated, which is the rule for Nigerian businesses selling abroad; it is the mirror image of your position as a seller into Nigeria.
Four common situations for an Italian company
| Situation | Who usually deals with Nigerian VAT | What to check |
|---|---|---|
| Consulting or design services to a Nigerian company, invoiced from Italy | The Nigerian customer, under the reverse charge | Your invoice terms and whether the customer self-accounts |
| Software subscriptions or digital services to Nigerian users | Possibly you, if appointed as a non-resident digital company | Whether the NRS has appointed you; the vat-digital guide below |
| Goods shipped to a Nigerian buyer | Usually handled at import into Nigeria | Ask your freight forwarder and the buyer how import taxes are collected |
| Services delivered by your staff on the ground in Nigeria | May require your own Nigerian registration | Whether you have a permanent establishment |
For digital services in particular, the Nigeria library's guide to VAT on digital services sold into Nigeria covers the appointment regime in more detail.
Tax presence changes the answer
The Nigeria Tax Act widens the idea of a permanent establishment to a service presence through employees, agents or subcontractors, according to a June 2026 note by Adeola Oyinlade & Co. A company with such a presence is no longer a purely foreign supplier, and may need its own Nigerian tax registration and filings. Italy's treaty with Nigeria covers only air and shipping, according to the FIRS circular on treaty claims, so there is no general treaty definition to rely on. See paying staff in Nigeria for the employment side.
Pricing and contract wording
Because the VAT outcome depends on who accounts for it, say so in the contract. A clause stating that prices exclude any Nigerian VAT, and that the customer will account for VAT where the law requires it to self-account, avoids a dispute later about whether 7.5% should have been added on top or carved out of the price. If you are appointed to collect VAT yourself, your price list for Nigerian customers needs to show VAT separately, and your system needs to produce invoices that meet NRS requirements.
Ask large Nigerian customers early how they handle the reverse charge. Their finance teams may already deal with foreign suppliers and can tell you what they need to see on the invoice, such as your full company details, a description of the service and the period covered.
What we could not confirm
- The current NRS steps for a non-resident company without a CAC number to register for VAT.
- Whether the small-business VAT exemption under the new law applies to non-resident suppliers.
- Any NRS list of currently appointed non-resident companies.
If any of these affects you, get a written view from a Nigerian tax adviser before you start invoicing at volume.
Worked example (illustrative)
Your Milan studio invoices a Lagos company €10,000 for a brand design project delivered remotely, with no Nigerian tax invoice. Under the reverse charge the Lagos company accounts for Nigerian VAT of 7.5%, that is €750 equivalent in naira, to the NRS. You invoice €10,000; the VAT is the customer's to declare. In Italy, ask your commercialista how to invoice a non-EU business customer and what to write on the invoice.
Separately, the Lagos company may deduct Nigerian withholding tax from what it pays you; see receipts and documents for your accountant for the credit note you should ask for.
Steps
- Classify each sale: services delivered remotely, digital services, goods, or work on the ground.
- For B2B services, agree in the contract that the Nigerian customer self-accounts for VAT where the law requires.
- For digital services to consumers, check whether you have been appointed by the NRS.
- If you have people or agents in Nigeria, ask about permanent establishment and registration.
- Keep invoices and payment records in euros and naira at the transaction-date rate: see which exchange rate to use.
Where Pryme fits
A Pryme Business Account gives an Italian company naira account details so Nigerian customers can pay locally, and invoicing keeps sales records by currency. Outside Nigeria, these activities are carried out through regulated partners.
Questions people ask
Does an Italian company charge Nigerian VAT?
Usually not on B2B services invoiced from abroad: the Nigerian customer self-accounts under the reverse charge. Appointed non-resident digital companies must charge it.
What is the VAT rate in Nigeria?
7.5%, according to PwC's Nigeria summary reviewed in May 2026.
Do I need to register for VAT in Nigeria as a foreign company?
If you are appointed as a non-resident digital supplier, or have a taxable presence in Nigeria, registration questions arise. Ask a Nigerian adviser.
Who replaced FIRS in Nigeria?
The Nigeria Revenue Service (NRS) now administers federal taxes, including VAT.
Sources
- PwC Worldwide Tax Summaries: Nigeria, corporate other taxes (reviewed 29 May 2026) · accessed Oct 2026
- Adeola Oyinlade & Co: Worker misclassification in Nigeria, 18 Jun 2026 · accessed Oct 2026
- FIRS Information Circular 2022/15 on claiming tax treaty benefits in Nigeria (11 May 2022, hosted by KPMG) · 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.