By Facebook has said that from January 1, 2022, Nigerians will begin to pay 7.5 per cent value-added tax (VAT) on all advert placements.
The social media, with META as its new nomenclature, disclosed this on Thursday in a statement it issued.
The charge, the statement further noted, 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.
“All advertisers with a business country of Nigeria will be charged an additional 7.5% VAT on advertising services purchased beginning 1 January 2022,” it stated.
The statement further 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.
“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,” it added.
STONIX NEWS reports that Facebook is the parent company of Instagram, FB Messenger, and Facebook social media channel.
The new 7.5 per cent VAT charge will also apply to Instagram ads, it was further gathered.
Recall that the Federal Government has been working on modalities to tax the digital economy in order to shore up revenue.
In this regard, President Muhammadu Buhari had transmitted the 2021 Finance Bill to the National Assembly.
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