# VAT Compliance for Digital Sales in Nigeria

> Rules for VAT in Nigeria: rates, thresholds, registration, filing expectations, and Dodo Merchant of Record handling.

- **Jurisdiction**: Nigeria
- **Tax Type**: VAT
- **Standard Rate**: 7.5%
- **URL**: https://dodopayments.com/tax/vat-nigeria

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## How VAT Applies to Digital Goods

The **standard VAT rate** in Nigeria is **7.5%**.

Nigeria applies a 7.5% VAT rate on digital services provided to Nigerian consumers, one of the lowest rates globally. The Finance Act 2020 brought non-resident digital service providers into the Nigerian VAT net, requiring them to register with FIRS and collect VAT on services delivered to Nigerian customers.

The threshold for registration is NGN 25 million in annual turnover from Nigerian customers. Nigeria defines taxable digital services broadly to include apps, streaming, cloud services, digital advertising, and SaaS platforms. Returns are filed monthly through the FIRS TaxPro Max portal by the 21st of the following month. Payment must accompany the return.

## Registration Requirements

Non-resident digital service providers must register with **FIRS (Federal Inland Revenue Service)** using the **TIN (Tax Identification Number)** format. Registration should be completed before first taxable sales to Nigeria consumers.

## Filing and Compliance

Nigeria requires **monthly** VAT filing with FIRS (Federal Inland Revenue Service). Maintain complete transaction records, tax calculations, and invoices for audit readiness.

## How Dodo Payments Handles This

As Merchant of Record, Dodo Payments calculates Nigeria VAT at checkout, collects tax from the customer, generates compliant invoices, and handles remittance -- removing the need for merchants to register or file separately.

## Related Pages

**Section:** [All Tax Guides](https://dodopayments.com/tax)
**See also:** [Nigeria](https://dodopayments.com/payments-in/nigeria) | [NGN](https://dodopayments.com/currency/ngn)

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