Nigeria's new tax reform now enforces compliance on Value Added Tax (VAT) payment on digital payments, SaaS and online services - which will significantly boost tax revenue.
The new system mandates e-invoicing and real time VAT reporting in assessment of taxes.
“These tax provisions represent a digital fiscalisation milestone,” said Paulinus Iyika, assistant director, Federal Inland Revenue Service (FIRS) in a linkedIn post.
In Q2 2025, about 22.3 percent of all VAT came from foreign sources from digital services to foreign companies s
