This was revealed via email already sent to Facebook users.
Part of the content of the email reads, “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.”
The Companies Income Tax (Significant Economic Presence) Order, which was approved as an amendment to the Finance Act 2019 in 2020, mandates the new tax structure.
The document imposes a tax on any foreign corporation providing specified services to Nigerians and earning money in Naira, as well as a tax on foreign digital service providers who provide services to Nigerians and generate revenue in Naira.
This is also featured in the Finance Bill 2021, which passed second reading in the National Assembly’s (NASS) Red Chamber on Wednesday.