Nigeria Regulatory Updates March 2025

Nigeria E-invoice Update : FIRS Launches Peppol 

E-Invoicing Pilot 

1. Pilot Program Launched

   
   

Nigeria's Federal Inland Revenue Service (FIRS) has launched a pilot program for mandatory e-invoicing and real-time reporting with large taxpayers. The initiative aims to enhance tax administration and compliance. 

2. Peppol-Based E-Invoicing System 

The pilot uses the BIS (Billing Information Standard) Billing 3.0 UBL (Universal Business Language) standard to facilitate seamless e-invoice exchange for B2B, B2C, and B2G transactions. It will integrate with over 500,000 businesses. 

3. New "FIRS e-Invoice" Platform 

FIRS has introduced the "FIRS e-Invoice" platform to manage invoices in line with the Tax Administration and Enforcement Act (TAEA), ensuring transparency and compliance. 

4. Fiscal Policy Goals 

FIRS aims to increase tax revenue by 57%, targeting N19.4 trillion in 2024. Digital reporting may become mandatory in the future, with the specific timeline to be clarified later, potentially starting as early as 2025. 

5. VAT Revenue Strategy 

E-invoicing is a key strategy to double Value Added Tax (VAT) revenues. The Central Bank of Nigeria (CBN) already uses a form of mandatory e-invoicing for payment clearing. 

6. Integration with Taxpayer Systems 

In January 2022, FIRS integrated its ATAS (Automated Tax Administration System) tax connector with taxpayers' accounting systems, allowing direct monitoring of transactional data to detect VAT discrepancies. 

7. ATAS Implementation Authority 

Since April 30, 2021, FIRS has had the authority to implement ATAS, which automates tax audits and data collection. Refusal to grant access to FIRS will result in penalties. 

8. Compatibility and Integration Issues 

Practical concerns regarding the compatibility and integration of ATAS with taxpayer systems remain unresolved.