Social media giant, Facebook has announced that Nigerians will pay 7.5 percent value-added tax (VAT) on all ad placements from January 1, 2022.
The charge will also apply to those buying ads for businesses or personal purposes. Those exempted from VAT would be able to recover the fund if they provided their tax ID.
The new 7.5 percent VAT charge will also apply to Instagram ads. The statement read;
“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 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.”