A corporate VAT invoice for a Lagos customer should clearly show the supplier’s business information and TIN, the customer and transaction details, and 7.5% VAT separately. PaperlessNaija’s Free VAT Invoice Maker lets you enter the details, generate the invoice, then download, print or share it digitally.
What should a corporate VAT invoice include?
A corporate VAT invoice should identify the supplier, customer, transaction and VAT amount clearly enough for both businesses to understand the charge. For a Nigerian business, prepare the trading or registered business name, address, contact details, TIN and the date of the invoice.
List each product or service supplied with a useful description and amount. Show the subtotal separately from VAT, then show the total amount payable. The Free VAT Invoice Maker displays Nigeria’s standard 7.5% VAT separately and includes the business TIN and other business information you enter.
For example, imagine a Lagos caterer billing a corporate office for an event. The invoice should identify the catering service, state the agreed amount before VAT, show 7.5% VAT as a separate line, and make the final amount easy for the accounts department to check.
How is 7.5% VAT worked out on an invoice?
VAT is worked out by multiplying the taxable amount by 7.5%, then adding the VAT to the amount before VAT. For example, if a corporate vendor supplies goods worth NGN 200,000 before VAT, the VAT is NGN 15,000 and the total is NGN 215,000.
A second example is a freelance designer in Ikeja charging NGN 80,000 for a branding service. At 7.5%, the VAT is NGN 6,000, making the total NGN 86,000. These examples use simple arithmetic; the correct treatment of a particular transaction can depend on the business and the transaction.
The invoice maker is useful when you want the VAT amount shown separately rather than mixing it into one figure. For questions about your own VAT obligations, records or tax position, check with the Nigeria Revenue Service (NRS, formerly FIRS) or a qualified accountant.
How can a Lagos vendor create the invoice online?
You can create a corporate VAT invoice by opening the maker, entering the business and transaction information, generating the document and choosing how to use it. The process does not require installing separate software, and the tool is free to use.
- Open the VAT invoice maker.
- Enter the business name, TIN and other business information.
- Add the customer, supplied items or services and amounts.
- Review the subtotal, the separately shown 7.5% VAT and the total.
- Generate the invoice, then download, print or share it digitally.
Before sending the document, compare the customer name, figures and TIN with the information in your business records. A small spelling or number error can make it harder for a corporate buyer to match the invoice with its purchase order or internal records.
When should you use a different invoice or receipt tool?
The best document depends on whether you are proposing a price, billing for a service, or confirming money already received. A VAT invoice is suitable when you need a transaction document with VAT shown separately; it is not the same as a receipt confirming payment.
Use the Proforma Invoice Maker when a customer needs expected costs before goods or services are supplied. For a consultant, technician or agency billing for completed work, the Service Invoice Maker is a more focused option.
When payment has already been received, use the Official Business Receipt Maker instead of presenting an invoice as proof of payment. If you simply need a general bill without the VAT layout, the Free Invoice Generator may be a better fit.
What mistakes should corporate vendors avoid?
The most common mistakes are leaving out the TIN, combining VAT with the item price, using the wrong customer information, and sending an invoice that does not explain what was supplied. A vendor should also avoid treating an invoice as confirmation that payment has already been made.
Imagine a boutique in Victoria Island sending a corporate buyer an invoice for several shirts. If the document only says “clothes” and gives one unexplained total, the buyer may need to ask for clarification. Clear descriptions, amounts and a separate VAT figure make review easier.
Keep a copy of the information used for each invoice and check important tax questions with the NRS or an accountant. For more background on preparing a VAT document, read the VAT invoice format guide. When you are ready to create one, use the Free VAT Invoice Maker.
Frequently asked questions
Is the Free VAT Invoice Maker suitable for a Lagos corporate vendor?
Yes. It is designed to make a VAT invoice with 7.5% VAT shown separately, together with the business TIN and other business information. You can enter the relevant transaction details and generate the document online.
Can I show my business TIN on the VAT invoice?
Yes. The tool includes the business TIN along with other business information that you enter. Check the TIN carefully before generating the invoice.
Is a VAT invoice the same as a receipt?
No. An invoice requests or records a charge for goods or services, while a receipt normally confirms that payment has been received. Use a receipt tool when the customer has already paid.
How much VAT is shown on the invoice?
Nigeria’s standard VAT rate is 7.5%, and the maker shows that VAT separately. For questions about whether a particular transaction should include VAT, ask the NRS, formerly FIRS, or a qualified accountant.
Can I use the generated document after creating it?
The finished document can be downloaded, printed or shared digitally. Review the business information, customer details and figures before sending it.