Commercial Invoice with VAT & WHT Calculator
Prepares professional Nigerian commercial invoice schedules with line items, adds statutory 7.5% VAT, deducts vendor Withholding Tax (WHT) at source, and computes net cash receivable.
Computational Framework & Statutory Formulas
Subtotal = Sum of (Quantity × Unit Price)
Gross Billed = Subtotal + 7.5% VAT
WHT Deducted = Subtotal × Applicable WHT Rate (5% or 10%)
Net Cash Collected = Gross Billed - WHT Deducted = Subtotal + 7.5% VAT - WHT Deducted
Nigerian Economic & Statutory Context
A common commercial mistake in Nigeria is deducting Withholding Tax from the gross invoice amount inclusive of VAT. By law and FIRS circulars, WHT must be computed strictly on the VAT-exclusive contract sum, while 100% of the VAT must be remitted or collected.
Frequently Asked Questions (FAQ)
Should Withholding Tax (WHT) be calculated on VAT-inclusive or VAT-exclusive amounts?
WHT must always be calculated strictly on the VAT-exclusive contract sum (net subtotal). It is legally incorrect to deduct Withholding Tax from the VAT portion of an invoice.
What documents should a vendor demand from a client after WHT has been deducted?
The vendor must demand an official FIRS or State IRS Withholding Tax Credit Note from the client, confirming that the deducted tax was properly remitted. This credit note is utilized by the vendor to offset their annual income tax liability.