Learn how Nigeria’s 7.5% VAT applies to Upwork services, who must pay, VAT ID rules, exemptions, and what happens if you change location.
In this article
- What's the Nigeria VAT and why does Upwork collect it?
- What services does VAT apply to in Nigeria?
- What's the Nigeria VAT rate?
- Do I need to provide Upwork my Nigeria VAT ID and what happens if I do?
- Are there any exemptions to Nigeria VAT?
- What if I change locations—how does that impact Nigeria VAT?
- Who has to pay Nigeria VAT?
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What if I’m only living in Nigeria temporarily?
Disclaimer: This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
What's the Nigeria VAT and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you, and Nigeria requires Upwork to collect it and send it to their government.
We’re required to comply with the tax laws of countries where we do business to operate there.
What services does VAT apply to in Nigeria?
Examples of services that VAT applies to:
- Freelancer Plus plan fee
- Freelancer Service Fee
- Connects purchases
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.
What's the Nigeria VAT rate?
The Nigeria VAT rate is 7.5% of the cost of the service being taxed. Example: On $100 USD in freelancer service fees, you will pay $7.50 in tax, for a total of $107.50.
You’ll see the estimated amount of tax when you check out and on your invoices and transactions page.
Do I need to provide Upwork my Nigeria VAT ID and what happens if I do?
- You're not required to provide a VAT ID
- You still have to pay VAT ID, and Upwork has to collect it, even if you provide a VAT ID
- If you provide your VAT ID, we'll display it on your invoices. You can enter it in your Upwork account’s Tax information section
Nigeria VAT ID format:
Your Nigeria VAT ID is a unique number issued by the Federal Inland Revenue Service (FIRS)—not your tax ID number. It has 12 numerical digits, like this, for example: 01012345-0001.
To learn more, visit the Nigeria tax authority website.
Are there any exemptions to Nigeria VAT?
Nigeria does not offer any applicable exemptions from VAT on services Upwork provides, and there's no exemption for providing your VAT ID.
What if I change locations—how does that impact Nigeria VAT?
If you update your tax residence in your Tax information, we'll automatically adjust your VAT based on your new country's rates, if any. Other countries may require a valid VAT ID or similar documentation.
Who has to pay Nigeria VAT?
Nigeria’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Nigeria.
What if I’m only living in Nigeria temporarily?
As long as your tax residence is set to Nigeria, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.