FIRS and FIRS E-Invoicing System
In-depth guide on FIRS and the FIRS E-Invoicing System
We introduced DigiTax Nigeria and FIRS e-Invoicing on the getting-started page. Below, we are going into further detail on - Federal Inland Revenue Service (FIRS) and the FIRS E-Invoicing System.
FIRS
The Federal Inland Revenue Service (FIRS) is Nigeria's tax authority. FIRS has had a long history with significant milestones from 1903.
In 2007, FIRS got financial and administrative autonomy with the passage of the Federal Inland Revenue Service (establishment) Act 2007.
With this Act enacted by the National Assembly of the Federal Republic of Nigeria, FIRS is charged with powers of assessment, collection of, and accounting for revenues accruable to the government of the federation; and for related matters.
FIRS E-Invoicing System introduction
The national e-invoicing solution (FIRS E-Invoicing System) is a strategic initiative of FIRS aimed at enhancing tax administration through real-time visibility into business transactions and financial data.
FIRS has been implementing the e-invoicing solution in a phased rollout. Overall,
- the 6th pillar of Nigeria's Digital Economy Policy and Strategy (2020–2030) - Soft Infrastructure, and
- support for growth of the digital economy
are the driving factors of the rollout of the FIRS E-Invoicing System.
Key Features of FIRS E-Invoicing System
- Digital Representation of Transactions:
Captures essential transaction details such as supplier and buyer information, item descriptions, quantities, prices, taxes, and total amounts. - Global Standards:
Built on international best practices like the Universal Business Language (UBL) and Pan-European Public Procurement Online (Peppol), facilitating local and cross-border trade. - Security and Integrity:
Advanced encryption ensures secure data transmission and compliance. - Secure Invoice Exchange:
Read more on e-Invoicing and Secure Invoice Exchange
Key Benefits of FIRS e-Invoicing
- ERP Alignment: Ensures seamless integration with your ERP system to comply with FIRS standards.
- Digital Certificates: Manages the registration of devices and acquisition of digital certificates.
- Real-Time Functionality: Provides real-time notifications and invoice verification.
- Secure Exchange: Guarantees data integrity with cryptographically signed JWTs and industry-standard encryption.
Key Benefits for Businesses
- Enhanced Security: Encryption ensures sensitive data is protected.
- Real-Time Access: Instant processing and verification for efficient workflows.
- Global Compatibility: Aligns Nigerian businesses with international invoicing platforms for seamless trade.
- Ease of Use: Simplified integration reduces operational burden.
- Invoice Factoring: Read more on e-Invoicing and Invoice Factoring
Updated 2 months ago