E-Invoice Penalty Calculator
Calculate the potential cost of non-compliance with Nigeria's mandatory e-invoicing requirements.
Deadline: January 1, 2026 for all VAT-registered businesses
Estimated Penalty Breakdown
Base Penalty
Section 104 fixed penalty
₦200,000
100% of Tax Due
Based on VAT on revenue
₦0
Interest (est. 27.5% p.a.)
CBN MPR rate on unpaid tax
₦0
Late B2C Reporting
₦50,000 per day
₦0
Lost VAT Input Claims
Non-compliant invoices disallowed
₦0
TOTAL ESTIMATED COST
Per period of non-compliance
₦0
This is an estimate only
Actual penalties may vary based on specific circumstances, audit findings, and FIRS discretion. Consult with a tax professional for accurate assessment.
Avoid these penalties by getting compliant today
Understanding E-Invoice Penalties
Nigeria's e-invoicing mandate comes with significant penalties for non-compliance. Here's what businesses need to know.
₦200,000
Base Penalty
Fixed penalty for failure to use the fiscalisation system
100%
Tax Due Penalty
Plus the full amount of VAT that should have been remitted
27.5%
Interest Rate
CBN MPR rate applied to unpaid tax amounts
₦50,000
Daily B2C Fine
Per day for late B2C transaction reporting
Frequently Asked Questions
Common questions about e-invoicing penalties in Nigeria
What are the penalties for not using e-invoicing in Nigeria?
Under Section 104 of the Nigeria Tax Administration Act, failure to process taxable supplies through the fiscalisation system results in a ₦200,000 penalty plus 100% of the tax due plus interest at the prevailing CBN MPR rate.
When does e-invoicing become mandatory for SMEs in Nigeria?
E-invoicing becomes mandatory for all VAT-registered businesses (including SMEs) from January 1, 2026. Large taxpayers (₦5 billion+ annual turnover) must comply by November 1, 2025.
What is the penalty for late B2C reporting?
Late reporting of B2C transactions incurs a fine of ₦50,000 per day of non-compliance.
Can I claim VAT input if my invoice isn't e-invoice compliant?
No. Non-compliant B2B and B2G invoices will be disallowed for VAT input claims, which means you lose the ability to offset the VAT you paid on purchases.
How can I avoid e-invoicing penalties?
Use an NRS-compliant e-invoicing solution like ZUTAX that validates all invoices before submission, ensuring they meet all requirements and are transmitted through a certified Access Point Provider.
Don't Risk Non-Compliance
Get your business ready for the January 2026 deadline with ZUTAX. Our NRS-compliant platform ensures every invoice meets requirements.