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E-Commerce Tax Compliance in Nigeria Explained

The days of ‘informal’ e-commerce in Nigeria are over. From January 1, 2026, all e-commerce platforms and vendors must comply with the Electronic Fiscal System (EFS). This means every sale must generate a real-time digital invoice linked to the NRS.

Key 2026 E-commerce Rules

  • Marketplace Liability: Platforms like Jumia or Konga are now ‘collection agents.’ They may be required to deduct VAT directly from the full value of the sale.
  • E-Invoicing: If your turnover exceeds ₦5 billion, you must sync your store’s backend with the NRS Merchant-Buyer Solution (MBS).
  • VAT on Digital Goods: Digital downloads and software keys are now subject to the 7.5% VAT.

Small online shops under ₦50M turnover remain exempt from CIT but must still issue VAT-compliant invoices if they are registered. See Digital Tax Rules for more. For implementation guides, visit NRS.gov.ng or WTS Blackwoodstone.”