Nigerians To Pay 7.5% VAT on Facebook Ad.
Recently, Facebook announced to it’s Nigerian users who wish to use it’s promotional services of introduction of new VAT charge of 7.5 %, a charge previous not included in promotional bill of Facebook Nigeria, set to commence on the first day of 2022.
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It was earlier reported that from Saturday, January 1, 2022, Nigerians would be required to pay a 7.5 per cent VAT for advertisements on Facebook and other social media websites.
The federal government, in the 2021 Finance Bill forwarded to the National Assembly for approval, wants more revenue from that source, because many residents of the country and businesses use the platform for advertisement.
In the notice sighted by Business Post, Facebook said in the coming weeks, it would begin to charge the extra fee on adverts on its platform in compliance with the local tax laws.
It advised advertisers to update their payment details with the tax identification number (TIN), but disclosed that the TIN could also be used to tax refunds where necessary.
“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,” a part of the statement said.
On how to add the VAT ID to user’s Facebook ad account, the company said users will have to go to Payment Settings and click on the Open Payment Settings and the click Edit under Business Info.