Nigerian Consultant's Invoice Guide 2026: VAT, Withholding Tax, and Getting Paid

Two questions come up constantly for Nigerian consultants when raising invoices:

1. Should I add VAT to this invoice?
2. The client paid me the full amount without deducting WHT — what do I do?

This guide answers both, along with everything else you need to create correct, professional consulting invoices in Nigeria in 2026.

Part 1: Should You Add VAT to Your Consulting Invoice?

The Short Answer

Add VAT only if you are VAT-registered. If you are not registered, do not charge VAT — doing so without registration is a criminal offence under the NTA 2025 with penalties up to 100% of the VAT amount shown.

When Must You Register for VAT as a Consultant?

You must register for VAT when your annual consulting revenue exceeds ₦25 million. You may register voluntarily below this threshold.

Registration is done through the NRS (Nigeria Revenue Service, formerly FIRS) TaxPro Max portal at taxpromax.gov.ng.

VAT Rate for Consulting Services

The VAT rate on consulting services is 7.5%. Consulting services are not on the VAT exempt list — whether you are a management consultant, IT consultant, legal consultant, marketing consultant, or any other type, your services attract standard VAT when billed by a VAT-registered supplier.

How to Show VAT on a Consulting Invoice

A VAT-registered consultant's invoice looks like this:

Consulting Invoice — VAT Registered

Your VAT registration number must appear on the invoice.

What If You Are Not VAT-Registered?

Simply omit the VAT line. Your invoice shows only the fee and total — no mention of VAT at all. Do not write "VAT: N/A" or "VAT: 0%" — that implies you are VAT-registered. Just leave it out.

Part 2: Withholding Tax (WHT) on Consulting Invoices

What Is Withholding Tax?

Withholding Tax (WHT) is a tax deducted by the paying company before settling your invoice. The company deducts WHT from what it pays you, then remits it directly to the NRS on your behalf. You receive less cash, but you get a WHT credit that reduces your annual income tax liability.

WHT is not your tax to collect — it is your client's obligation to deduct and remit.

WHT Rates for Nigerian Consultants (2026)

Under the Nigeria Tax Act 2025:

The ₦2 Million WHT Exemption (NTA 2025)

This is the big change from 2025. Under the new rules, WHT does not apply to consulting invoices below ₦2 million — provided the consultant supplies a valid Tax Identification Number (TIN).

This means:

• Invoice amount: ₦1,800,000 + a valid TIN → no WHT deducted
• Invoice amount: ₦2,100,000 → WHT applies (5% individual = ₦105,000 deducted)
• Invoice amount: ₦1,800,000 but no TIN supplied → WHT applies

Always include your TIN on your invoices. It is a simple line that can save your clients paperwork and you a cash flow delay.

How WHT Affects Your Invoice Amount

If WHT applies, here is what a correctly paid consulting invoice looks like:

Your invoice: ₦1,500,000 (VAT-exclusive, assume not VAT-registered)

Client pays you: ₦1,500,000 − (5% WHT × ₦1,500,000) = ₦1,500,000 − ₦75,000 = ₦1,425,000

Client remits to NRS: ₦75,000 (on your behalf, credited to your TIN)

You receive less cash now, but ₦75,000 is credited against your income tax bill at year-end. Keep records of all WHT deductions — request a WHT credit note or receipt from each client.

Part 3: What Happens When the Client Pays the Full Amount Without Deducting WHT?

This is one of the most common consulting invoice problems in Nigeria. The client pays ₦1,500,000 in full without deducting the ₦75,000 WHT.

What should have happened: The client deducts WHT and remits it to NRS.

What actually happened: You received ₦75,000 more than you should have, and the client has a tax compliance problem.

Your Options:

Option 1 — Refund the WHT amount to the client Return ₦75,000 to the client so they can deduct it from their books and remit it properly to NRS. This is the cleanest approach and keeps both parties compliant.

Option 2 — Include WHT in your next invoice Agree with the client to deduct the unremitted WHT amount from the next invoice. For example, next invoice is ₦1,500,000 — client pays ₦1,350,000 (₦1,425,000 minus the ₦75,000 owed from last time).

Option 3 — The client remits it anyway (gross basis) Some large companies will still remit WHT to NRS even if they paid you in full, treating it as an additional cost. This is their compliance problem to manage, though it means NRS shows ₦75,000 credited to your TIN for which you received the same amount in cash — a net benefit to you.

What you should NOT do: Simply ignore it and hope no one notices. If NRS audits your client and finds unpaid WHT, the liability traces back to the consulting payments. It is better to resolve it promptly.

Practical Advice

Add a note to your invoice to remind clients:

"Note: Withholding Tax (WHT) at the applicable rate (5% for individuals / 10% for companies) should be deducted before payment and remitted to NRS. Please provide a WHT credit note after remittance."

Part 4: Building a Complete Consulting Invoice

Here is everything your consulting invoice should include in 2026:

Your details (top of invoice):

• Full name or business name
• Address and contact details
• Tax Identification Number (TIN)
• VAT registration number (if registered)
• Logo (optional but professional)

Client details:

• Company name and address
• Contact person
• Client's TIN (request this — needed for WHT processing)

Invoice details:

• Unique sequential invoice number (e.g., CONS-2026-047)
• Invoice date
• Due date (typically 14–30 days)
• Purchase Order or LPO number (if the client issued one)

Service breakdown:

• Description of each deliverable (be specific — not just "consulting" but "Brand Strategy Workshop — 2 days, 15–16 May 2026")
• Daily/hourly rate or fixed fee
• Quantity and unit
• Line total

Totals section:

• Subtotal
• VAT at 7.5% (if VAT-registered)
• Total Due
• WHT note (reminding client to deduct before payment)

Payment details:

• Bank name, account name, account number, sort code
• Or Paystack payment link for online payment

Part 5: Standard Consulting Rates in Nigeria (2026 Reference)

Rates vary widely by sector and experience, but these are general market ranges for Nigerian independent consultants:

For training manual development specifically, the typical rate is ₦80,000 – ₦200,000 per day, depending on the complexity of the subject matter and the seniority of the consultant.

These are guidelines. Actual rates depend on the client's budget, your experience, the project scope, and your track record. Rates for international clients (World Bank, USAID, EU-funded projects) are typically higher and may be quoted in USD.

Quick Reference: Consulting Invoice Rules at a Glance

Important: WHT is calculated on the pre-VAT amount (the consultant's fee), not on the total including VAT.

Sources: Nigeria Tax Act 2025 (NTAA 2025); NRS WHT rate schedule; ICAN Nigeria Practice Guide; PwC Nigeria Tax Summary 2026.

Create your consulting invoice now — free →

Need a ready-made layout? Browse the freelance invoice template for Nigerian contractors →