Expense rules in Nigeria.
All FIRS rules: 7.5% VAT, mission allowances and VAT recovery rules in Nigeria.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 7,5% | 100% reclaimable | If business legitimate |
| Travel meals | 7,5% | 100% reclaimable | Per diem cap |
| Accommodation | 7,5% | 100% reclaimable | Tax invoice required |
| Fuel | 7,5% | 100% reclaimable | Business records |
| Train / flight | 7,5% | 100% reclaimable | Public transport |
| Taxi / Uber / Bolt | 7,5% | 100% reclaimable | Receipt required |
| Client gifts | 7,5% | Limited | FIRS reasonable cap |
| Parking | 7,5% | 100% reclaimable | Tax invoice |
Tax invoice
Mandatory tax invoice for ITC.
Per diem
MNC standard.
Retention
FIRS records: 6 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | NGN 200/km | By company | Standard practice |
| Motorcycle | NGN 100/km | By company | Reduced rate |
MNC practice
Private sector standard.
Records
Date, destination, km.
Inflation
Caps revised by NGN/USD.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Lagos / Abuja | NGN 20,000 | NGN 80,000 | NGN 100,000 |
| Port Harcourt | NGN 15,000 | NGN 65,000 | NGN 80,000 |
| Senior executive | NGN 50,000 | NGN 150,000 | NGN 200,000 |
| Foreign — Johannesburg | NGN 35,000 | NGN 120,000 | NGN 155,000 |
| Foreign — London | NGN 80,000 | NGN 250,000 | NGN 330,000 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on invoice.
Inflation
Caps revised by NGN/USD.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Nigeria → EU | No reciprocity | — | No agreement |
| France | No reciprocity | — | No agreement |
| United Kingdom | No reciprocity | — | No agreement |
| Switzerland | No reciprocity | — | No agreement |
| USA | No recovery | — | Sales tax not recoverable |
| NG VAT for foreign | None | — | No mechanism |
No B2B refund
No B2B recovery procedure.
Free zones
Nigerian Free Trade Zones exempt.
Outbound
Very few bilateral agreements.
Industrialize your Nigeria expenses with Illizeo.
7.5% VAT, MNC per diem, multi-currency NGN↔USD↔EUR↔CHF: all the FIRS rules above are natively integrated into Illizeo.
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