Why You Need Professional Invoices

A professional invoice is more than just a receipt — it's a legal document that protects your business, helps you get paid faster, and keeps you compliant with Nigerian tax laws. Whether you're a freelancer, SME, or registered company, proper invoicing is essential.

What Should a Nigerian Invoice Include?

According to FIRS and NRS requirements, every business invoice in Nigeria must contain:

Your Business Details: Company name, address, phone number, and Tax Identification Number (TIN)
Client Details: Customer name, address, and TIN (if applicable)
Invoice Number: Unique sequential number for tracking (e.g., INV-2026-001)
Date Issued: When the invoice was created
Payment Terms: Due date (e.g., "Payment due within 30 days")
Itemized Services/Products: Description, quantity, unit price, total
VAT (7.5%): If your business is VAT-registered and the service is taxable
Withholding Tax (WHT): If applicable (usually 5% or 10% depending on service)
Total Amount Due: Clear final amount to be paid

Understanding VAT on Invoices

VAT (Value Added Tax) in Nigeria is currently 7.5%. However, not all services require VAT:

VAT-Exempt Services (0% VAT):

• Basic food items
• Medical and pharmaceutical products
• Books and educational materials
• Rent and accommodation
• Public transportation

If you're VAT-registered (turnover above ₦25M/year), you must charge VAT on taxable services and remit it to the government monthly.

What is Withholding Tax (WHT)?

Withholding Tax is an advance tax payment that your client deducts from your invoice before paying you. Common WHT rates in Nigeria:

5% - Professional services (consulting, legal, accounting)
10% - Contracts, commissions, technical services
5% - Rent on land and buildings

"Why my client dey always remove 5% from my money?" — That's WHT! It's not extra tax, it's advance payment. Make sure you collect a WHT Credit Note to use when filing your annual tax returns.

Invoice Example Calculation

Freelance Consulting Service:

• Service Fee: ₦500,000
• VAT (7.5%): +₦37,500
= Gross Amount: ₦537,500
• WHT (5%): -₦25,000 (deducted by client)
= Net Payment to You: ₦512,500

*Client must give you a WHT Credit Note for the ₦25,000 deducted

Benefits of Using This Invoice Generator

Automatic Calculations: VAT and WHT computed instantly — no math errors
Professional Design: Clean, branded invoices that look trustworthy
Tax Compliant: Includes all FIRS/NRS required fields
Instant PDF Download: Send to clients immediately via email or WhatsApp
Free Forever: No hidden fees, no subscriptions

Common Invoicing Mistakes to Avoid

Missing TIN: Always include your Tax Identification Number — it's legally required
Wrong VAT Rate: Don't charge 10% VAT — the correct rate is 7.5% in 2026
No Invoice Number: Use sequential numbering for tracking and audits
Vague Descriptions: Be specific about what you're charging for
No Payment Terms: Always state when payment is due

Pro Tip: Keep copies of all invoices for at least 6 years. The tax authorities can audit your business and request proof of income. Digital copies (PDF) are legally acceptable!

Instant Invoice

Professional Invoice Generator for Nigerian Businesses