The owners of Facebook have revealed that Nigerians will have to pay before advertising their goods and services on the social media platform.
This was revealed via email already sent to Facebook users.
Part of the content of the email reads, “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 new tax regime is in pursuant of the Companies Income Tax (Significant Economic Presence) Order, introduced in 2020 as an amendment of the Finance Act 2019.
The document imposes tax on any “foreign entity with respect to certain services or digital transactions tax foreign digital service providers offering services to Nigerians and earning revenue in naira.
Also, this is carried in the Finance Bill 2021, which scaled second reading at the Red Chamber of the National Assembly (NASS) on Wednesday.
