Skip to main content

NIGERIANS TO PAY 7.5% VAT ON FACEBOOK ADS FROM JAN 1

 

From Jan 1, Nigerians will pay 7.5% VAT on Facebook ads

Facebook says Nigerians will pay 7.5 percent value-added tax (VAT) on all ad placements from January 1, 2022.

The social media giant said this in a statement On Wednesday, TheCable reported that the bill empowers the Federal Inland Revenue Service (FIRS) to assess and charge companies income tax(CIT) on any digital company with a significant presence in the country, such as Facebook, Twitter, AliExpress, others.

If passed into law, it will increase government revenue and widen the tax net in a cash-strapped economy. on Thursday.

According to the statement, the charge will apply to those buying ads for businesses or personal purposes.

“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,” the statement reads.

All advertisers with a business country of Nigeria will be charged an additional 7.5% VAT on advertising services purchased beginning 1 January 2022.

The statement added that those exempted from VAT would be able to recover the fund if they provided their tax ID.

“If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts,” it added.

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.”

Facebook (now META) is the parent company of Instagram, FB Messenger, and Facebook social media channel.

TheCable understands that the new 7.5 percent VAT charge will also apply to Instagram ads.

The federal government is currently working on modalities to tax the digital economy and improve revenue. President Muhammadu Buhari had transmitted the 2021 Finance Bill to the national assembly.

The bill empowers the Federal Inland Revenue Service (FIRS) to assess ABC charge companies income tax (CIT) on any digital company with a significant presence in the country, such as Facebook, Twitter, AliExpress, others.

If passed into law, it will increase government revenue and widen the tax net in a cash-strapped economy.


Comments

Popular posts from this blog

Countries Accepting Nigerians Seeking Second Citizenship

  Countries Accepting Nigerians Seeking Second Citizenship Nigerians are able to access the following citizenship and immigration programs: The Caribbean Second Citizenship Programs, Caribbean nations like St. Kitts & Nevis, St. Lucia and Grenada offer second citizenship through their respective Citizenship-by-Investment programs. A holder of one of these passports may travel visa free to about 135 countries, including all European Union countries, the UK, Russia, Turkey, Singapore and Hong Kong. Holding a citizenship from one of these respected countries may also make it easier to obtain residency status or study in other countries, and allows political security and makes it easier to open bank accounts in foreign jurisdictions. To qualify, an applicant needs to be of good reputation and make a government donation of at least $100,000 USD after approval of their citizenship application.  Approval of a Citizenship-by-Investment application normally takes about 3 months, a...

EXCLUSIVE BREAST MILK IS THE BEST ONDO FIRST LADY TELLS NURSING MOTHERS AT BREASTFEEDING WEEK CELEBRATION

    Government Stresses Importance of Breast milk for Children as  Ondo State Celebrates Commencement of World Breastfeeding  Week   . ....525 nursing mothers breastfeed children. Ondo State on Friday joined the rest of Nigeria and the International Community in the celebration of 2024 World Breastfeeding Week. In a message to the event, held at the International Event Centre,  The Dome, in Akure, the First Lady, Mrs. Oluwaseun Aiyedatiwa emphasized the critical importance of initiating breastfeeding within the first hour of birth and maintaining exclusive breastfeeding for the first six months. The wife of the Governor, who was represented by Commissioner for Women Affairs, Mrs. Lola Fagbemi, reiterated that workplaces in the state are being adapted to support nursing mothers, highlighting the state's commitment to providing conducive environments for breastfeeding. She noted that Ondo State places significant priority on maternity leave for nursing ...

INFRASTRUCTURE MINISTRY CELEBRATES PASTOR BABALOLA FOR TRANSFORMATIVE LEADERSHIP

Ministry Celebrates Pastor Babalola for Transformative Leadership  The Ministry of Works and Infrastructure has honored Pastor Joseph Ayoade Babalola, the immediate past Special Adviser to the Governor on Infrastructure, Lands, and Housing, for his exceptional leadership, character, and contributions during his tenure. The event, held at the Ministry’s headquarters, was attended by top government officials and staff, who described Pastor Babalola as a visionary leader, a mentor, and a team player who exemplified humility and a strong work ethic. Speaking at the ceremony, the Administrative Secretary of the Ministry, Engineer Akinluyi Omotola, emphasized the need to celebrate Babalola’s legacy, which, according to him, left an indelible mark on the Ministry. “Pastor Babalola brought a new dimension to leadership during his short but impactful tenure. He fostered unity, love, and inclusion, ensuring that no officer was sidelined or marginalized. His humility, openness, and respect fo...