Source: https://rivet.global/blog/nigeria-vat-on-foreign-digital-services
Published: 2026-10-17 · Updated: 2026-10-17 · By Alexia M.

# Nigeria VAT on foreign digital services and imported services

How Nigerian VAT applies to digital services from foreign providers: the 7.5% rate, non-resident supplier registration and self-accounting by companies.

## Key takeaways

- Nigeria's VAT rate is 7.5%.
- Non-resident suppliers of digital services to Nigerian customers can be required to register and charge VAT.
- Where a foreign supplier does not charge VAT, a Nigerian business customer may need to account for it.
- The tax authority, now the Nigeria Revenue Service, administers VAT under the 2025 tax laws in force from 2026.

Nigerian companies pay for a lot of foreign software: design tools, CRMs, cloud hosting, ads. VAT on those services follows rules for non-resident suppliers and imported services.

## How it works

| Situation | Who accounts for VAT |
|---|---|
| Foreign supplier registered in Nigeria | Supplier charges 7.5% on the invoice |
| Foreign supplier not registered | Nigerian business may self-account |
| Supplier with a Nigerian entity | Local VAT rules apply |

## The 2026 reforms

The Nigeria Tax Act and related acts, signed in June 2025, took effect on 1 January 2026. They kept VAT at 7.5% and moved administration to the Nigeria Revenue Service. Details on input VAT recovery and digital services changed; ask your adviser how they apply.

## Records

- Keep each invoice.
- Note whether VAT was charged.
- Record self-accounted VAT in your returns where required.

## Paying the supplier

Most foreign SaaS bills in dollars by card. Card limits on naira cards, and the rate at which they convert, have changed often. See [Nigerian companies paying foreign SaaS and ads](/blog/nigeria-companies-paying-foreign-saas-and-ads-after-fx-reforms).

## Paying into Nigeria: the local rail

| What | Detail |
|---|---|
| Local rail | NIBSS Instant Payment (NIP) |
| Run by | Nigeria Inter-Bank Settlement System |
| Settlement | Seconds, 24/7 |
| Published fee | The CBN caps the sender's charge at ₦10 up to ₦5,000, ₦26 up to ₦50,000 and ₦50 above that |

Source: [NIBSS: NIP](https://nibss-plc.com.ng/). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet serves registered companies in supported countries, including foreign companies owned by Nigerian founders where eligible, with cards that spend in USD and receipts on one ledger. Rivet does not advise Nigerian-registered companies to hold funds offshore. Rivet is not a bank; regulated partner institutions hold the funds. See [Nigeria tax reform 2026 for small companies](/blog/nigeria-tax-reform-2026-small-companies).

## Questions

### What is the VAT rate in Nigeria?

7.5%.

### Do foreign SaaS companies charge Nigerian VAT?

Some do, where registered as non-resident suppliers. Check your invoices.

### What if the supplier does not charge VAT?

A Nigerian business may need to self-account for VAT on the imported service. Ask your tax adviser.

### Who administers VAT?

The Nigeria Revenue Service, which replaced FIRS under the 2025 tax reform acts.