Invoice format for small business in Nigeria — with 7.5% VAT done properly
A Nigerian invoice that gets paid is specific: who you are, what was supplied, how much, and whether VAT applies. Since 1 January 2026 the Nigeria Tax Act 2025 governs the rules — the VAT rate itself did not change, but what you must show on the invoice, and who has to charge it, matters more than it used to. Here is the format, a worked VAT example, and a generator that produces a clean invoice in about two minutes.
What a Nigerian invoice must carry
Your business details — name, address, and your TIN (Tax Identification Number). Clients increasingly refuse invoices without one.
The word “Invoice”, a sequential invoice number, and the invoice date. Sequential numbering is part of what a VAT invoice requires.
The customer's details — name and address (and their TIN for business customers).
Each item supplied — description, quantity, unit price, and the line total.
The subtotal, then VAT shown separately at the rate applied, then the grand total in naira.
Payment details and terms — bank name, account name, account number, and the due date.
For a VAT invoice specifically: the rate charged and the VAT amount, so the customer can see both. Never bury VAT inside a single lump sum.
How to add 7.5% VAT — a worked example
Line
Amount (₦)
Subtotal (goods or services supplied)
100,000.00
VAT at 7.5%
7,500.00
Total payable
107,500.00
VAT is added on top of your price, not extracted from it. If you quote ₦100,000 "all-in" and you are VAT-registered, the VAT component of that figure is ₦6,976.74 — you keep less than you think. Quote exclusive of VAT, or work the number backwards deliberately.
Who has to charge VAT in 2026
The rate is 7.5% — unchanged by the 2025 tax reforms, which took effect on 1 January 2026.
Registration is turnover-based. Once taxable supplies pass the statutory threshold you must register with the Nigeria Revenue Service (NRS, formerly FIRS), charge 7.5% on taxable supplies and file monthly. 2026 advisories differ on the exact threshold figure, so confirm the current number with the NRS or your accountant rather than relying on a blog — including this one.
Small companies get relief. Qualifying small companies (modest turnover and fixed assets below the statutory limit) pay 0% company income tax and are relieved from charging VAT under the small-company test. Professional-services firms are excluded from that relief.
Below the threshold, registration is voluntary — and sometimes worth it, because bigger clients ask for VAT invoices.
What changed in 2026 for you: input VAT is now recoverable on services and capital assets, not only on goods. Stop writing off the VAT on equipment, software and professional services by reflex.
What is zero-rated or exempt
Zero-rated at 0% (input VAT still recoverable): basic food items, medical and pharmaceutical products, books and educational materials, tuition, residential rent, and exports.
Residential rent is zero-rated — which is why a landlord issuing rent invoices should not be adding 7.5% to a residential tenant's rent.
Exempt supplies (certain financial and government services) carry no VAT and no input recovery.
E-invoicing is being rolled out
Nigeria is phasing in electronic (fiscal) invoicing through the NRS: large taxpayers first (from late 2025), then medium and smaller VAT-registered businesses over 2026 and 2027. If you are VAT-registered, keep your invoice data clean and sequential now — converting later is painful. Confirm the timetable for your size band with the NRS or your accountant.
Make it in 2 minutes — free
DocOga works on your phone: answer simple questions, get a clean, standard Nigerian document you
can print, save as PDF or share on WhatsApp. The free version carries a small banner; the Oga Pass
(₦2,000/30 days) unlocks unlimited clean copies across all 9 tools.
7.5%. The Nigeria Tax Act 2025, effective 1 January 2026, kept the headline rate unchanged; what changed is that input VAT is now recoverable on services and capital assets too.
Do I have to charge VAT as a small business?
Only once your taxable turnover passes the registration threshold, unless you qualify for the small-company relief. Below the threshold registration is voluntary. Confirm the current threshold with the NRS or your accountant — 2026 advisories quote different figures.
Is VAT added on top or taken out of my price?
On top. Quote ₦100,000 plus 7.5% VAT = ₦107,000 total. If you quote an all-in price and you are registered, the VAT inside it comes out of your money.
Do I need a TIN on my invoice?
You need one to be VAT-registered, and business customers increasingly insist on seeing it. A TIN is free and quick to obtain for a registered business — it also matters for withholding tax on payments to you.
Should my rent receipt include VAT?
No. Residential rent is zero-rated, so a residential rent receipt or invoice should not carry 7.5% VAT. Service charges on a residential building are a different question — ask your accountant before you add VAT to them.