As of January 2021, the Federal Inland Revenue Service (FIRS) requires non-resident entities like Twilio Inc. & its affiliates (“Twilio”) to collect Value Added Tax (VAT) for any Electronically Supplied Services (“ESS”) sold to customers located in Nigeria. Twilio will begin collecting this VAT starting in July 2026. This guide covers how Twilio charges VAT and what services are taxable. 

Notice: Twilio services may be subject to tax in various countries, states and/or localities. To see if Twilio collects taxes in your country, please see the Taxes section of our Support Help Center

The following topics are discussed in this guide. Click a topic to skip directly to this information:

• Value Added Tax (VAT) overview.
• What rate is VAT charged in Nigeria?
• How do I enter my Tax Identification Number (TIN) or VAT number?
• How can I be tax exempt for VAT?
• How is VAT determined?
• Where can I see the VAT charged on my Invoice?

Value Added Tax (VAT) overview

The Federal Inland Revenue Service (FIRS) requires non-resident entities selling digital services to collect and remit a 7.5% Value Added Tax (VAT) on its sales to customers located in Nigeria.

Unlike other tax regimes, non-residents are required to apply VAT to all invoices, covering both Business to Business (B2B) and Business to Customer (B2C) transactions by default.

When will Twilio start charging VAT in Nigeria?

Twilio will begin collecting VAT on services sold to customers located in Nigeria starting in July 2026. VAT is assessed and applied to your account at the start of the month for the previous month’s usage.

For example, you will be charged VAT for your July usage in August.

What rate is VAT charged in Nigeria?

Twilio's services will be subject to the standard 7.5% VAT rate as determined by the Federal Inland Revenue Service (FIRS).

How is VAT determined?

VAT is applicable based on the type of products or services that are purchased. We have determined that most of Twilio's products & services are subject to VAT as Electronically Supplied Services (Digital services).

Please confirm your service address is up to date in Twilio Billing Console for accurate taxation in the correct jurisdiction. For help updating your service address, see How do I Update my Billing Settings.

How do I enter my Tax Identification Number (TIN) or VAT number?

Nigerian customers will be able to enter their VAT/TIN number in the Billing Console. Customers can enter their VAT number in the “Business Tax ID” field on the Billing Preferences page in Console.

How can I be tax exempt for VAT?

As a non-resident supplier, Twilio has the primary responsibility to collect and remit the 7.5% VAT for all customers. The implementation plan indicates Twilio will charge the 7.5% VAT on all sales; therefore, standard tax exemptions are not available, and the tax applies to both B2B and B2C transactions alike.

Where can I see the VAT charged on my Invoice?

VAT can be found on your invoice in the Usage Summary section under “Taxes”. This line item represents the VAT charged.

The invoice will display the 7.5% VAT breakdown.

Tax calculation is explained on the Tax Details page. For more details, see Reading your Twilio Invoice