Nigerian advertisers to pay a Value Added Tax of 7.5% from January 2021, Facebook has announced in a blog post.
According to Facebook, the charge will apply to those buying ads for business or personal purposes.
The announcements follow a move by the federal government to ensure social media companies and digital service providers pay tax.
Following the announcement of a new finance bill that compels social media paying tax, Facebook has announced that Nigerian advertisers from January will be charged 7.5 percent value-added tax for using Facebook and also Instagram.
The social media giant said this in a statement issued on Thursday, 9 December 2021.
According to Facebook, the charge will apply to those buying ads for businesses or personal purposes.
“Due to the implementation of new value-added tax (VAT) in Nigeria, Facebook is required to charge VAT on the sale of ads to advertisers, regardless of whether you are buying ads for business or personal purposes.”
“Beginning January 1, 2022, all advertisers operating a business in Nigeria will be charged 7.5 percent VAT.”
“If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts,”
“If you’re entitled to recover the VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria.”
Facebook also in the post added that people who are free from VAT would be able to reclaim the funds if they give their tax ID the Cable reports