E-invoicing: FIRS to onboard selected ‘Large Taxpayers’ July

The Federal Inland Revenue Service (FIRS) has ramped up engagement of stakeholders on the phased roll-out of the e-invoicing system otherwise known as the merchant buyer solution, saying the solution is cost saving and capable of improving tax compliance and business efficiency. This is just as the service would begin a phased roll out of […]

The Federal Inland Revenue Service (FIRS) has ramped up engagement of stakeholders on the phased roll-out of the e-invoicing system otherwise known as the merchant buyer solution, saying the solution is cost saving and capable of improving tax compliance and business efficiency.

This is just as the service would begin a phased roll out of the initiative with selected large taxpayers in July 2025.

At the stakeholder engagement on the pilot roll-out of the e-invoice solution, the service urged tax payers to onboard into the portal, saying it is the future of taxation.

The E-invoicing, according to the FIRS is a Merchant Buyer Solution, which provides a digital representation of transactions between suppliers and buyers, effectively replacing traditional paper or electronic documents such as invoices, credit notes, and debit notes.

The FIRSMBS is a digital portal that shall be used by all Value Added Tax (VAT) registered taxpayers’ businesses to manage the issuance of e-invoices in accordance with Section 25, Part 5 of the Tax Administration and Enforcement Act 2007.

Mr. Tayo Koleosho, Chief of Staff to the Executive Chairman of FIRS and Coordinating Director, Strategic Management Office stated that the solution is being developed locally to provide a more integrated and digitalised approach to tax administration.

He stated the FIRS is in an era of Digital Transformation, which he tagged as 3.0 to make lives easier for all taxpayers, by providing an integrated system that works for both taxpayers and tax collectors.

He said, “We are here to discuss, deliberate and consult about our digitalisation approach. The journey started from tax 1.0, which was paper based. We moved into tax administration 2.0 globally, which was more digitised. From tax administration 2.0, we are fully automated.

“Every day, you find out that new models, new innovations are being added but the ultimate goal is to go into. 3.0. At 3.0 where people are moving globally, you find out that it becomes part of your natural business operation, especially for the large taxpayers, SMEs, where even from your resource planning system, POS system, everything becomes integrated and much more seamless.”

In his presentation, the Coordinating Director, Compliance Support Group, Mr. Mathew Gbonjubola represented by Coordinating Director, Competent Authority Department, Sunday Oke-Owo listed the benefits of the e-invoicing, saying it enhances compliance.

Other benefits he listed include seamless input claims, ease of refund processing, environmental impact, error reduction, business efficiency, improved transparency, ease of data recovery, among others.

Coordinating Director, Large Taxpayer Groups, Amina Ado represented by Mr. Olatunji Olabode disclosed that FIRS plans “To commence the implementation of the pilot phase of this solution with selected large taxpayers.”

According to her, the initiative “Is a strategic step towards fostering efficiency, transparency, and accountability in Nigeria’s tax administration system.”

“The e-invoicing system is not just a technological innovation but a strategic enabler that aligns with international best practices, ensuring seamless tax compliance, reducing revenue leakages and enhancing ease of doing business in Nigeria.

“The insights gained from this phase will guide the broader implementation, ensuring that the solution is responsive to the needs of taxpayers across various sectors,” she added.