Global News

Nigerians To Pay 7.5% VAT On Facebook Ads From 1st January 2022

Nigerians To Pay 7.5% VAT On Facebook Ads From 1st January 2022 (Updated: 10 months ago)


Nigerian businesses on Facebook will pay 7.5 percent value-added tax (VAT) when they place ads on the social media platform.

This will become effective from January 1, 2022.

The social media giant said this in a statement issued on Thursday.

According to the statement, the charge will apply to those buying ads for businesses or personal purposes.

“Due to implementation of a value-added tax (VAT) in Nigeria, Facebook is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes,” the statement reads.

“All advertisers with a business country of Nigeria will be charged an additional 7.5% VAT on advertising services purchased beginning 1 January 2022.

The statement added that those exempted from VAT would be able to recover the fund if they provided their tax ID.

“If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts,” it added.

“In the event that 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 (now META) is the parent company of Instagram, FB Messenger, and Facebook social media channel.

TheCable understands that the new 7.5 percent VAT charge will also apply to Instagram ads.

The federal government is currently working on modalities to tax the digital economy and improve revenue. President Muhammadu Buhari had transmitted the 2021 Finance Bill to the national assembly.

On Wednesday, TheCable reported that the bill empowers the Federal Inland Revenue Service (FIRS) to assess and charge companies income tax (CIT) on any digital company with a significant presence in the country, such as Facebook, Twitter, AliExpress, others.

If passed into law it will increase government revenue and widen the tax net in a cash-strapped economy.

Add a coment

Recent Posts

Diamond Jimma
Diamond Jimma
Yemi Alade
Yemi Alade
Mayorkun
Mayorkun
Vector
Vector
KayKay...
KayKay...
Davido
Davido
Olamide
Olamide
Pepenazi
Pepenazi
Asa
Asa
Olakira
Olakira
Zoro
Zoro
Waconzy
Waconzy
LK Kuddy
LK Kuddy
Seriki
Seriki
Falz
Falz
JoeBoy
JoeBoy
Sean Tizzle
Sean Tizzle
Drizz Ace
Drizz Ace
Kabex
Kabex
Ruger
Ruger
Temmie Ovwasa
Temmie Ovwasa
Dr Dolor
Dr Dolor
Lamboginny
Lamboginny
Mr Real
Mr Real
DJ Kaywise
DJ Kaywise
DJ Baddo
DJ Baddo
2Baba
2Baba
Waje
Waje
DJ OP Dot
DJ OP Dot
Samklef
Samklef
Minjin
Minjin
JamoPyper
JamoPyper
Flykid
Flykid
Iyanya
Iyanya
Ibraah
Ibraah
Jaywon
Jaywon
BOJ
BOJ
Sound Sultan
Sound Sultan
Runtown
Runtown
B-Red
B-Red
NAIJAKIT.COM

Trending Posts