Social media company, Facebook (Meta), has announced that effective January 1, 2022, all advertisements on its platform by Nigerians will attract a 7.5 percent value added tax (VAT).
This was contained in a statement by the company on Thursday.
According to the statement, the VAT charge will apply to both those buying ads for business 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 further noted that those exempted from VAT would be able to recover the fund if they provide 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,” the statement added.
Facebook also owns social media channels, Instagram, FB Messenger, and WhatsApp and the VAT charges, it will apply on the other channels as well.
The finance bill 2021, 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 and AliExpress, among others.
