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 an Irish business buys services from a Nigerian supplier for business purposes, Revenue treats the Irish business as the supplier for VAT: you account for Irish VAT on the invoiced amount at the appropriate Irish rate in your own return and, if entitled, reclaim it in the same return. Revenue (page published 7 July 2026) says there is no registration threshold for received services, so a VAT-exempt business such as an insurer must register and pay. The Nigerian supplier should not charge Irish VAT.
Why the VAT moves to you
Revenue's general rule for business-to-business services is that VAT is due where the customer is established, "whether the business customer is in the EU or not" (Revenue, place of supply page, published 10 August 2026). A Lagos design studio invoicing your Dublin company is supplying a service whose place of supply is Ireland. The studio is not registered for Irish VAT and cannot collect it, so the duty shifts to you. This is the reverse charge, which Revenue calls self-accounting.
Who must self-account
Revenue's page on received services says businesses receiving services from abroad, from EU and non-EU suppliers alike, for business purposes, are treated as the supplier for VAT. It then sorts customers like this:
| Your business | What Revenue says | Cost to you |
|---|---|---|
| VAT-registered, fully taxable | Account for VAT in your periodic return and reclaim it in the same return | Usually nil, the two entries cancel |
| VAT-exempt (Revenue's examples: bookmakers, banks, insurers) | Must register and account for Irish VAT on taxable services received from outside the State | Real cost: VAT payable without full recovery |
| Non-taxable legal person with a VAT number (local authorities, State agencies) | Must self-account | Usually a cost |
| Non-taxable legal person without a VAT number | Not required to account | None under this rule |
Revenue says there is no registration threshold for received services. A small exempt business that buys a few thousand euro of Nigerian services can still have to register.
How the entries look
Revenue's example shows the VAT on the sales side of the return (T1) and the reclaim on the purchases side (T2). In plain steps:
- Take the invoiced amount in euro. If the invoice is in naira or dollars, convert it using the method your accountant uses for VAT and apply it consistently.
- Work out VAT at the Irish rate that would apply if you had supplied the service yourself.
- Enter that VAT in T1 for the period.
- If you are entitled to recover VAT on the purchase, enter the same amount in T2.
- Keep the supplier's invoice and a note of the calculation.
Worked example
Example, with an illustrative rate. A Galway web agency buys €4,000 of front-end development from a Lagos studio. To keep the arithmetic simple, suppose the applicable Irish rate were 20% (an illustration only; check Revenue's VAT rates page for the rate that actually applies to the service). The agency enters €800 in T1 and, being fully taxable, €800 in T2. Net VAT payable on this purchase: €0. If the buyer were an exempt insurer that could not recover input VAT, it would pay the €800 and the service would cost €4,800.
What the Nigerian invoice should show
Revenue tells the Irish customer to give its VAT number to the supplier; otherwise, in an EU context, VAT may be charged in another Member State. For a Nigerian supplier, ask for an invoice that shows your company name and Irish VAT number, the service and period, the amount and currency, and no Irish VAT.
On the Nigerian side, PwC's Nigeria summary (reviewed 29 May 2026) says Nigerian VAT is 7.5% and that exported services are zero-rated. If a Nigerian supplier adds 7.5% Nigerian VAT to an invoice for a service exported to you, ask whether it has treated the service as an export; our Nigeria library explains VAT on exported services from the supplier's view.
When the rule does not bite
The self-accounting rule is about services received by a business for business purposes. If a director buys a Nigerian online course for personal interest and pays from a personal card, it is not a business purchase and does not belong on the company's return. If the Nigerian supplier has its own establishment in Ireland that makes the supply, ask your adviser whether that establishment should charge Irish VAT instead. And goods bought from Nigeria follow import rules, not this one.
Common mistakes
- Treating the Nigerian invoice as outside the scope of VAT and leaving it off the return.
- Recording the purchase but forgetting the T1 entry, so the return reclaims VAT that was never declared.
- Assuming that a business below the VAT registration threshold for its own sales has nothing to do; the received-services rule has no threshold.
- Using one exchange rate for the books and another for the VAT entry without a reason.
For the bookkeeping side of currency, see booking FX gains and losses on naira payments. If you also sell to Nigerian clients, our note on charging Irish VAT to a Nigerian client covers the other direction.
Where Pryme fits
Paying the Nigerian supplier from a Pryme Business Account gives you a dated record of the amount, currency and rate for each payment. The Finance agent can match the payment to the invoice and flag it for self-accounting; a person approves the entry.
Questions people ask
Do I pay VAT on services bought from Nigeria?
Yes, if you are an Irish business buying for business purposes: you self-account for Irish VAT and, if entitled, reclaim it in the same return.
Is there a threshold before I must self-account?
Revenue says there is no registration threshold for received services.
Should my Nigerian supplier charge me VAT?
Not Irish VAT. PwC says Nigerian exported services are zero-rated, so Nigerian VAT should not normally appear either.
I am VAT-exempt. Does the reverse charge apply to me?
Yes. Revenue says exempt businesses receiving taxable services from outside the State must register and account for Irish VAT, which becomes a cost.
Sources
- Revenue: Self-accounting for VAT on received services (published 7 Jul 2026) · accessed Oct 2026
- Revenue: General place of supply rules for services (published 10 Aug 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, other taxes (corporate) (reviewed 29 May 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.