Facebook, the social media giant has issued a statement that Nigerians will start paying 7.5 percent value-added tax (VAT) on all ad placements from January 1, 2022.
Those buying ads for businesses or personal purposes will be charged as well. Those who will not be charged for the VAT would be able to recover the fund if they are able provid their tax ID.
The application of new 7.5 percent VAT charge will also apply to Instagram ads placement.
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.”