Beginning January 1, 2022, Nigerians will be required to pay value added tax (VAT) for accessing Facebook.
The tax is levied directly on Nigerians who utilize the social media platform to market or sell their goods.
Facebook has already started sending out emails to its users informing them of the change.
Nigerians would now have to pay a 7.5 percent VAT as a result of the new development.
Hitvibz gathered that the following email was sent to Facebook users;
“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.
“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 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 Companies Income Tax (Significant Economic Presence) Order, which was introduced in 2020 as a modification to the Finance Act 2019, is the basis for the new tax regime.
The document levies a tax on any “foreign company with respect to specific services or digital transactions” that offers services to Nigerians and earns revenue in naira.
This is also reflected in the Finance Bill 2021, which received second reading in the National Assembly’s Red Chamber (NASS) on Wednesday.
𝑳𝒊𝒌𝒆 𝒕𝒉𝒊𝒔 𝒑𝒐𝒔𝒕?
𝑾𝒆’𝒅 𝒃𝒆 𝒅𝒆𝒍𝒊𝒈𝒉𝒕𝒆𝒅 𝒕𝒐 𝒉𝒆𝒂𝒓 𝒇𝒓𝒐𝒎 𝒚𝒐𝒖. 𝑷𝒍𝒆𝒂𝒔𝒆 𝒍𝒆𝒂𝒗𝒆 𝒂 𝒄𝒐𝒎𝒎𝒆𝒏𝒕 𝒊𝒏 𝒕𝒉𝒆 𝒃𝒐𝒙 𝒃𝒆𝒍𝒐𝒘!
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