Zoom Video Communications, Inc. (Zoom) has announced that it will, with effect from January 1, 2022, begin to charge 7.5 per cent Value Added Tax (VAT) on all transactions by its Nigeria customers.
This was contained in a statement issued on Monday.
Social media platform, Facebook, had last week also announced it will be introducing VAT on advertisements from January 1, 2022.
Zoom, in the statement, said the additional charge follows Nigeria’s new VAT policy.
“For customers with a sold to address in Nigeria, Zoom will begin applying VAT to invoices and remitting the VAT collected through Zoom’s VAT registration in Nigeria in accordance with the new rules relating to Value Added Tax for Non-Resident Suppliers of Electronically Supplied Services.
“Zoom is routinely evaluating its indirect tax collection and remittance obligations. The application of these taxes to businesses with online activities is a complex and evolving area.
“This applies if you are registered for VAT in Nigeria and if you are not registered for VAT in Nigeria.
“Zoom continues to review such developments, as well as the nature and extent of its activities in different jurisdictions, and, based on such regular review, will start charging indirect taxes where applicable,” the statement reads.
In carrying out this action, Zoom said customers who are registered for VAT in Nigeria are advised to provide their valid Taxpayer Identification Numbers (TINs).
“To provide your TIN, please complete the following steps:
“Sign in to the Zoom Portal.
“In the navigation panel, click Account Management, then Billing.
“Click the Billing Information tab.
“Under Sold to Contact, choose to edit the TIN (which appears after the Sold to Contact Address field).
“Enter your TIN and click save.
“You are required to notify us if there is a change in your VAT registration status,” it added.
The company said it will only be collecting VAT for invoices generated on or after January 1, 2022.
“Invoices prior to this date will not be impacted,” Zoom stated.
