How to Create Professional Invoices in Nigeria (with VAT and WHT)

An invoice is more than a request for money. In Nigeria it is also a tax document: it shows VAT you must remit, and it is the basis for the withholding tax your customer deducts. Getting it right means faster payment and fewer awkward conversations with clients and accountants.

TL;DR

• Every invoice needs your business details and TIN, a unique number, dates, the customer's details, line items, totals, tax and payment details.
• VAT is charged on top of your price at the standard rate of 7.5%, if your business is VAT-registered.
• Withholding tax (WHT) is deducted by your customer from what they pay you, and they remit it to the tax authority on your behalf.
• Show the balance due clearly when a customer pays in parts.
• A payment link and automatic reminders shorten the time to get paid more than anything else.

What must a Nigerian invoice include?

1. The word "Invoice" (or "Tax Invoice" if you charge VAT).
2. Your business name, address and contact details, plus your RC or BN number.
3. Your Tax Identification Number (TIN).
4. A unique invoice number in sequence, such as INV-0042.
5. The invoice date and the due date.
6. The customer's name, address and, for business customers, their TIN.
7. Line items: description, quantity, unit price and line total.
8. Subtotal, VAT, any WHT deduction and the total.
9. Payment details: bank account name and number, or a payment link.
10. Payment terms, such as "Due within 14 days".

How to show VAT on an invoice

Value Added Tax in Nigeria is charged at a standard rate of 7.5%, added on top of your price. If your business is registered for VAT and the goods or services are VATable:

• Subtotal: ₦1,000,000
• VAT at 7.5%: ₦75,000
• Total: ₦1,075,000

The VAT you collect is not your income. You remit it to the tax authority on the schedule that applies to you, so show it as a separate line, never buried in the price.

How withholding tax (WHT) works on an invoice

Withholding tax is an advance payment of income tax. For many business-to-business services and contracts, your customer deducts WHT from the amount they pay you and remits it to the tax authority in your name. You then use the WHT credit note or receipt to reduce your own income tax.

WHT is calculated on the amount before VAT. Using a 5% rate as an example:

• Subtotal: ₦1,000,000
• VAT at 7.5%: ₦75,000
• Invoice total: ₦1,075,000
• WHT at 5% of ₦1,000,000: ₦50,000
• Amount the customer pays you: ₦1,025,000

The correct WHT rate depends on the type of transaction and whether you are a company or an individual, so confirm the rates that apply to you with your accountant. Showing the WHT deduction on the invoice avoids the classic dispute where the customer pays less than the total and you chase a "shortfall" that is really tax.

How to handle part payments

Large jobs are often paid in instalments: a deposit to start, the rest on delivery. Make the invoice do the tracking:

• Record each payment with the date, amount and method.
• Show total, paid and balance due clearly on the invoice and the customer's copy.
• Keep reminders going on the balance, not the original total.
• Send a receipt for every payment.

How to get paid faster

1. Invoice immediately, the day the work is delivered.
2. Add a payment link so the customer can pay by card or bank transfer in one tap, alongside your account details.
3. Use short, clear terms. "Due in 14 days" gets paid faster than "Due in 30 days".
4. Send reminders automatically: a friendly note before the due date and firm follow-ups after.
5. Watch your ageing report: how much is current, 1 to 30 days overdue, 31 to 60, 61 to 90, and over 90. The older a debt, the harder it is to collect.

Estimates, recurring invoices and credit notes

• An estimate (or quote) agrees the price before work starts. Convert it to an invoice once accepted, without retyping.
• A recurring invoice bills retainers and subscriptions automatically each month.
• A credit note corrects or refunds an invoice that has already been issued, rather than editing history.

Where QuiQSol fits

QuiQ Invoices handles all of this on the same customer record as your CRM. Tax is set as a percentage on top, with an optional WHT deduction shown on the invoice, PDF, customer link and emails. Part payments show total, paid and balance with a progress bar, reminders keep running on the balance, and you can get paid online straight to your bank. Sent invoices and estimates can be edited with a full revision log, and reports show collection rate, days to pay, tax and WHT totals, and an explained ageing summary. Choosing a CRM too? Read how to choose a CRM for a small business in Nigeria.