Tax & Finance

7.5% VAT on Freelance Invoices in Nigeria — What You Need to Know

S
Soloist Team
·June 5, 2026·6 min read

    FIRS has been increasingly active in pursuing VAT compliance from Nigerian freelancers and self-employed professionals. Here's what you need to know.


    Do Freelancers Pay VAT in Nigeria?


    Yes — if your annual turnover exceeds ₦25 million, you are required to register for VAT with FIRS and charge 7.5% on your services.


    If you earn below ₦25 million annually, VAT registration is optional but recommended if you work with corporate clients who need VAT invoices for their own tax purposes.


    How to Charge VAT on Invoices


    VAT should be shown as a separate line item on your invoice:


  • Service fee: ₦200,000
  • VAT (7.5%): ₦15,000
  • Total: ₦215,000

  • In Soloist, you can enable VAT with one toggle when creating an invoice. The calculation is automatic.


    How to Register for VAT


    1. Visit the FIRS TIN portal at tin.jtb.gov.ng

    2. Register for a Tax Identification Number (TIN) if you don't have one

    3. Apply for VAT registration through the FIRS self-service portal

    4. Once approved, you'll receive a VAT registration number to include on invoices


    Filing VAT Returns


    VAT returns are filed monthly — by the 21st of the following month. You report:

  • Output VAT — VAT you collected from clients
  • Input VAT — VAT you paid on business expenses
  • Net VAT payable — the difference

  • The Practical Reality


    Most Nigerian freelancers earning under ₦25M annually don't register for VAT. But if your corporate clients are asking for VAT invoices, registration is worth it — it makes you look more professional and allows them to claim input VAT.


    Soloist generates a complete tax report showing your total VAT collected, making filing straightforward.


    Generate your tax report on Soloist →

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