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Cash Purchase Invoice Template for Nigeria

A Cash Purchase Invoice is a legally binding commercial document used in Nigeria to record and confirm immediate cash payments for goods or services. This document complies with Nigerian tax regulations, including the Value Added Tax Act, and serves as official proof of purchase and payment. It contains essential elements such as seller and buyer information, transaction details, VAT calculations at the Nigerian rate of 7.5%, and confirmation of cash payment received. The document is crucial for business record-keeping, tax compliance, and serves as evidence of transaction in accordance with Nigerian commercial law.

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What is a Cash Purchase Invoice?

A Cash Purchase Invoice is essential for businesses operating in Nigeria when immediate cash payment is received for goods or services. This document type is specifically designed to comply with Nigerian commercial and tax laws, including the Value Added Tax Act and Companies and Allied Matters Act 2020. It differs from standard invoices by explicitly documenting the receipt of cash payment at the time of transaction, making it both an invoice and a receipt. The document should be used whenever a business receives immediate cash payment and needs to provide official documentation of the transaction. It must include all elements required by Nigerian law, such as tax identification numbers, VAT calculations, and proper business registration details. This document type is particularly important for audit trails, tax compliance, and business record-keeping in the Nigerian business environment.

What sections should be included in a Cash Purchase Invoice?

1. Invoice Header: Company details including registered name, address, registration number, TIN, contact information, and invoice number

2. Customer Information: Full details of the customer including name, address, and TIN (if applicable)

3. Invoice Details: Invoice date, due date (if applicable), payment terms stating 'Cash Payment', and reference numbers

4. Item Description: Detailed list of goods/services with clear descriptions, quantities, unit prices, and total amounts

5. Calculation Summary: Subtotal, VAT calculations (7.5% as per Nigerian law), and total amount payable

6. Payment Information: Confirmation of cash payment received, including payment date and receipt number

7. Legal Statement: Standard invoice declarations and compliance statements as required by Nigerian law

8. Authorization: Signature section for authorized representative and company stamp

What sections are optional to include in a Cash Purchase Invoice?

1. Purchase Order Reference: Include when the purchase was made against a specific purchase order

2. Delivery Information: Add when goods are physically delivered to a different address

3. Special Discounts: Include when any special pricing or discounts are applied to the purchase

4. Currency Declaration: Required when transaction involves foreign currency conversion

5. Tax Exemption: Include when customer has valid tax exemption status with supporting documentation

What schedules should be included in a Cash Purchase Invoice?

1. Detailed Product Specifications: Attached when products require detailed technical specifications or compliance certificates

2. Delivery Documentation: Delivery notes or proof of delivery when physical goods are involved

3. Tax Certificates: Copies of relevant tax exemption certificates or special status documentation when applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Invoice Form

Sector

Sales

Cost

Free to use

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