Nigeria has directed that foreign tech companies like Google “charge 7.5 per cent VAT on all taxable goods and services.”
Social media giant Google has announced that Nigeria-based advertisers will be charged 7.5 per cent value-added tax (VAT) on all ad placements from April 1, 2022.
“Due to new legislation in Nigeria, starting April 1, 2022, Google will be required to charge 7.5 per cent VAT on all taxable goods and services.” the company announced in a notice to its users in Nigeria.
In December 2021, the Finance Bill 2021 was signed into law by President Muhammadu Buhari.
The new legislation allows the Federal Inland Revenues Service (FIRS) to assess non-resident firms like Twitter, Meta, Google, and Netflix.
Facebook and Instagram had started charging the 7.5 per cent consumption tax in January.
The social media company disclosed, in a statement to users, that it was a result of the new fiscal regulations.
Earlier this month, Facebook announced a deadline for Nigerian advertisers on its platform to update their tax records to the site or risk not having their adverts displayed on the platform.
This comes as Nigeria attempts to diversify its economy, which largely depends on oil products.
Digital services such as online streaming, digital advertising, and e-commerce among others are being taxed across the continent, mostly in the form of the consumption tax.
Countries like Zimbabwe, Kenya and Cameroon have implemented taxes on digital services.
