When does e-invoicing become mandatory?

E-invoicing is being rolled out in phases starting 2026. Large taxpayers (>₦500M turnover) go first, followed by medium businesses, then small businesses by 2027-2028. Check FIRS announcements for exact dates.

What information must an e-invoice contain?

E-invoices must include: seller and buyer TIN, invoice number and date, description of goods/services, quantity and unit price, VAT amount, total amount, and a unique FIRS-generated transaction ID.

Can I use my existing accounting software?

Only if it's been updated to comply with FIRS e-invoicing standards. Check with your software vendor. KeepAm is working on full e-invoicing compliance for our invoicing feature.

What if my buyer doesn't have a TIN?

For B2C transactions, buyer TIN may not be required below certain thresholds. For B2B transactions, you should always collect the buyer's TIN. FIRS will provide specific guidance.

How does e-invoicing affect VAT claims?

Only invoices that have been validated through the e-invoicing system will be accepted for VAT input claims. Paper invoices or non-compliant electronic invoices will not be valid.

Is there a grace period for small businesses?

Yes, small businesses (turnover under ₦100M) have until 2027 or later to comply. However, it's advisable to prepare early to avoid last-minute disruptions.

E-Invoicing: Complete Guide for Nigeria 2026

What is E-Invoicing?

Quick Answer

E-invoicing is the electronic generation, transmission, and storage of invoices in a standardized format. FIRS is implementing mandatory e-invoicing to improve tax compliance and reduce VAT fraud.

Registration Threshold

E-invoicing will be mandatory for large taxpayers first (annual turnover above ₦500 million), then progressively extended to medium and small businesses by 2027.

Who Must Register for E-Invoicing?

Large taxpayers (turnover > ₦500M) - Phase 1 (2026)

Medium taxpayers (turnover ₦100M-₦500M) - Phase 2 (2026)

Small taxpayers (turnover ₦50M-₦100M) - Phase 3 (2027)

All VAT-registered businesses - Full rollout by 2028

How to Register for E-Invoicing

Assess Your Business

Determine which phase applies to your business based on annual turnover.

Upgrade Accounting System

Ensure your invoicing software can generate FIRS-compliant electronic invoices.

Register on FIRS E-Invoice Platform

Create an account on the FIRS e-invoicing portal when registration opens for your category.

Connect Your Systems

Integrate your accounting/POS system with FIRS via API or use an approved service provider.

Test & Go Live

Complete testing period and begin issuing mandatory e-invoices.

Technical Requirements

Invoice Data Elements

• Seller TIN and business details
• Buyer TIN (for B2B transactions)
• Unique invoice number and date
• Line items with descriptions, quantities, prices
• VAT breakdown (rate and amount)
• FIRS-generated transaction reference
• Digital signature/hash for integrity

System Integration Options

• API Integration: Connect your accounting system directly to FIRS
• Web Portal: Use the FIRS online portal for manual invoice creation
• Service Providers: Use FIRS-approved intermediaries
• POS Integration: For retail businesses with point-of-sale systems

Benefits of E-Invoicing

For Businesses

✓ Faster invoice processing
✓ Reduced paperwork and storage costs
✓ Fewer invoice disputes
✓ Easier VAT reconciliation
✓ Better cash flow visibility

For Tax Compliance

✓ Automatic VAT reporting
✓ Real-time transaction verification
✓ Reduced audit burden
✓ Faster VAT refund processing
✓ Clearer paper trail

KeepAm is preparing: Our invoicing feature is being updated to comply with FIRS e-invoicing requirements. KeepAm users will have a seamless transition when mandatory e-invoicing begins.

Implementation Timeline

Phase	Business Category	Expected Timeline
Phase 1	Large taxpayers (>₦500M turnover)	Q2 2026
Phase 2	Medium taxpayers (₦100M-₦500M)	Q4 2026
Phase 3	Small taxpayers (₦50M-₦100M)	Q2 2027
Phase 4	All VAT-registered businesses	Q4 2027 - 2028

Note: Timelines are subject to change based on FIRS announcements. Monitor official channels for updates.

Compliance Checklist

Determine your e-invoicing phase based on turnover

Audit current invoicing processes and systems

Select FIRS-compliant e-invoicing solution

Train staff on new e-invoicing procedures

Test integration before go-live date

Maintain backup systems for invoice storage

Monitor FIRS announcements for updates

Track Compliance with KeepAm

Penalties for Non-Compliance

Violation	Penalty	Notes
Failure to issue e-invoice	Invoice not valid for tax purposes (cannot claim VAT input)	-
Using non-compliant system	Subject to FIRS audit and potential penalties	-
Late adoption after deadline	₦50,000 first month + ₦25,000 each subsequent month	-
Data integrity issues	Re-audit of previous periods + penalties	-

Avoid penalties: Set up reminders for all filing deadlines. KeepAm sends automatic notifications before each due date.

Frequently Asked Questions

Stay Compliant with KeepAm

Track all your tax obligations, get deadline reminders, and generate filing-ready reports with KeepAm.

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