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
Under the Nigeria Tax Act 2025, in force from 1 January 2026, services consumed in Nigeria are subject to Nigerian VAT at 7.5% whether supplied from inside or outside the country. A non-resident supplier is expected to register and include VAT on its invoices to Nigerian consumers, while a VAT-registered Nigerian business customer generally self-accounts for the VAT. Thresholds and the registration route for small foreign sellers are not clearly set out in sources we could verify, so check with the Nigeria Revenue Service (NRS) before you sell at scale.
What changed in 2026
The Nigeria Tax Act 2025 (NTA) and the Nigeria Tax Administration Act 2025 took effect on 1 January 2026, replacing much of the earlier tax law. On VAT, two points matter to a UK seller:
- The rate stays 7.5%.
- Consumption is the test. Mondaq's analysis of the NTA VAT provisions (28 May 2026) says services consumed in Nigeria are taxable whether rendered inside or outside Nigeria, that a non-resident supplier must register and include VAT on its invoice, and that the Nigerian customer may be required to withhold and remit it.
WTS Blackwoodstone (March 2026) describes the same consumption basis, with examples including e-commerce, digital content, online advertising and cloud computing, and says foreign providers are "required to register and remit applicable VAT".
Business customers versus consumers
| Your Nigerian customer | Who accounts for Nigerian VAT |
|---|---|
| VAT-registered Nigerian business | Generally the customer self-accounts and remits to the NRS (WTS Blackwoodstone) |
| Individual consumer | The non-resident supplier is expected to register and charge VAT (Mondaq, May 2026) |
| Sales through a marketplace or app store | VATCalc reports platforms may be held liable; check the platform's terms |
For a UK freelancer whose Nigerian clients are mostly companies, the practical effect is small: you invoice without Nigerian VAT and the client deals with it. For someone selling courses or downloads to individuals, the obligation can fall on you.
Is there a threshold?
This is where the picture is least clear. VATCalc reports a registration threshold of USD 25,000 of annual turnover from Nigeria for non-resident digital suppliers and a "Simplified Compliance Regime" portal being rolled out, but we could not confirm either on an NRS page. The ₦25 million figure often quoted comes from the 2020 Significant Economic Presence Order, which concerns company income tax, not VAT; WTS Blackwoodstone notes the NTA itself "does not stipulate a threshold" for significant economic presence and leaves the detail to new regulations. Treat any threshold you read as unconfirmed until the NRS publishes it.
Selling through platforms
Many UK creators sell to Nigerians through course platforms, app stores or marketplaces. VATCalc reports that marketplaces and similar intermediaries may be held liable to register, collect and remit, and that the NRS may appoint platforms as collection agents. If you sell through a platform, read its tax terms: it may already add Nigerian VAT at checkout and pay it, in which case you should not charge it again.
A worked example
Example only. A UK coach sells a recorded course for ₦50,000 to individuals in Nigeria. If Nigerian VAT at 7.5% applies and the coach must charge it, the buyer pays ₦53,750 (50,000 + 3,750) and the coach owes ₦3,750 per sale to the NRS. At 200 sales, that is ₦750,000 of VAT collected (3,750 x 200). If instead the coach keeps the price at ₦50,000 including VAT, the net price is ₦46,511.63 (50,000 / 1.075) and the VAT ₦3,488.37 per sale.
What to check first
- Are your Nigerian customers businesses or individuals?
- Do you sell directly, or through a platform that already handles Nigerian VAT?
- Has the NRS published a registration route and threshold for non-resident suppliers of your kind?
- What does the UK side say? UK VAT on digital sales to Nigeria is separate; see UK VAT on digital products.
- Keep a record of each sale: buyer location, price, any VAT charged.
For the Nigeria-side detail written for businesses at home, see VAT on digital services sold into Nigeria. Tax points here are information, not advice.
How this sits with UK VAT
Nigerian VAT and UK VAT are separate systems with separate rules. Charging Nigerian VAT to a Lagos buyer does not settle your UK position, and leaving UK VAT off a sale does not mean no VAT is due anywhere. A UK-registered seller may find a sale carries UK VAT, Nigerian VAT, both or neither, depending on what is sold, to whom and through which channel. Map each product line before you set prices, because adding 7.5% after launch is harder to explain to buyers than building it in from the start.
Pricing in naira
If you price in naira, decide whether the price includes Nigerian VAT and say so on the checkout page. A tax-inclusive price is simpler for buyers; a tax-exclusive one protects your margin if the rules or your obligation change.
Keep the evidence simple and consistent: for each sale, the buyer's country, the price, the currency, and any VAT added. That record answers questions from either tax authority later.
Where Pryme fits
If Nigerian buyers pay you in naira, a Pryme Business Account gives you naira account details so the money arrives as naira, ready to set aside any VAT owed in the same currency. Virtual accounts help match each buyer's payment, and you can Swap the rest to pounds when you choose, seeing the rate and the fee before you approve.
Questions people ask
Do foreign sellers pay VAT in Nigeria?
Under the Nigeria Tax Act 2025, services consumed in Nigeria are subject to 7.5% VAT whether supplied from inside or outside Nigeria. A non-resident supplier selling to consumers is expected to register and charge it.
Is there a VAT threshold for non-resident digital sellers in Nigeria?
Not one we could confirm on an NRS page. VATCalc reports USD 25,000; the ₦25 million figure comes from the 2020 SEP Order for company income tax. Check with the NRS.
Does my Nigerian business client pay the VAT instead?
A VAT-registered Nigerian business customer generally self-accounts for VAT on imported services and pays it to the NRS.
What is the VAT rate in Nigeria in 2026?
7.5%, kept by the Nigeria Tax Act 2025.
Sources
- Mondaq: Examination of the VAT provisions under the Nigeria Tax Act 2025 (28 May 2026) · accessed Oct 2026
- Mondaq (WTS Blackwoodstone): Taxation of digital activities and cross-border transactions under the Tax Reform Acts 2025 (11 Mar 2026) · accessed Oct 2026
- VATCalc: Nigeria VAT obligations for non-resident digital service providers (undated) · 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.