FIRS assures manufacturers of data privacy with e-invoicing

FIRS Assures Manufacturers of Data Privacy with E-Invoicing

The Federal Inland Revenue Service (FIRS) has assured Nigerian manufacturers of robust data privacy measures as part of its upcoming e-invoicing initiative. This initiative, known as the Merchant Buyer Solution (MBS), is designed to modernize Nigeria’s tax administration by facilitating the seamless creation, validation, and exchange of electronic invoices, aligning with international best practices. 

To ensure transparency and accountability, the FIRS has engaged with large taxpayers and tax consultants across various sectors, including manufacturing, to gather feedback and address concerns. Stakeholder engagements have highlighted issues such as handling returned goods and invoicing multiple retail transactions, especially those paid for in cash. In response, the FIRS has emphasized that the system is designed to accommodate such peculiarities, allowing invoices to be inputted in real-time or near real-time. 

The pilot phase of the e-invoicing system is set to commence in July 2025 with selected large taxpayers, including manufacturers. The insights gained from this phase will guide broader implementation across various sectors. 

Furthermore, the National Information Technology Development Agency (NITDA) has collaborated with the FIRS to develop comprehensive regulatory guidelines for electronic invoicing. These guidelines aim to promote transparency, enhance efficiency, and ensure that only qualified entities participate in the e-invoicing process, thereby strengthening data security and fostering a more transparent financial system. 

In summary, the FIRS is committed to ensuring data privacy and addressing sector-specific concerns as it rolls out the e-invoicing system, aiming to enhance tax compliance and streamline business transactions in Nigeria.