Facebook has announced Nigerians will start paying 7.5% value-added tax (VAT) on all ad placements from January 1, 2022.
This was made known in a statement issued by the social media giant 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.
“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 read.
It noted that those exempted from the charge 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.
“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,” the company said.
The new 7.5% VAT charge will also apply to Instagram ads.
Nigeria government is currently working on modalities to tax the digital economy and improve revenue for the country.
