The Federal Inland Revenue Service (FIRS) is optimistic that its e-invoicing system will boost Nigeria's tax-to-GDP ratio. This new system aims to improve tax compliance, enhance transparency, and curb revenue losses.
Here's how it works: E-Invoicing System Features
- Electronic Invoicing: Replaces traditional paper or electronic documents like invoices, credit notes, and debit notes.
- Real-time Reporting: Enables taxpayers to report invoices electronically, reducing the need for physical visits to tax offices.
- Data Security: Ensures the security and integrity of transaction data.
- QR Code Validation: Allows buyers to validate invoices using a QR code for B2C transactions.
The FIRS plans to launch the e-invoicing system in phases, starting with a pilot program for large taxpayers in the second half of 2025. The system will cover various transaction types, including Business-to-Consumer (B2C), Business-to-Business (B2B), and Business-to-Government (B2G).
By implementing the e-invoicing system, the FIRS aims to increase Nigeria's tax-to-GDP ratio to 18% and improve the country's ranking in the ease of paying taxes.
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