Nigerians are to begin paying 7.5% VAT on Facebook ads from January 1 according to an announcement made by the California based media giant. The increase in the charge will apply on all ad placements on the platform both to buyers who use marketplace, and publishers who advertise their goods or services on the platform.

 

The new 7.5% VAT charge will also apply to Instagram ads and is only exempted to publishers who’re able to recover the fund if they provided their tax ID.

 
 
 

The increment to 7.5% tax was announced by Facebook in a statement  which 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 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.”

 
 
 
 

Also Read:   Eyewitness Gives Detailed Account of how Sylvester Oromoni Was Beaten and Died Days Later