Nigerians to Pay 7.5 Per Cent VAT to Google from April 2022

Nigerians to Pay 7.5 Per Cent VAT to Google from April 2022

  • Google owned by Alphabet has told Nigerians to brace up for a new tax regime effective April 2022 on all services in the country
  • Google announced this through an email it sent to its Nigerian users on March 1, 2022 that it will apply 7.5 VAT on purchases
  • The new Finance Act mandates digital companies in Nigeria to charge consumers the 7.5 VAT on transactions on their platforms

The search engine giant, Google has informed Nigerians that effective April 2022, 7.5 per cent VAT charge will apply on all taxable goods and services.

The company said this in an email sent to its Nigerian users which were seen by Legit.

Google Introduces VAT on services in Nigeria
Google Introduces VAT on services in Nigeria Credit: Andrei Askirka
Source: Getty Images

Google had said that the payment of VAT charged on purchases will appear as a different line charge in the user’s account.

What Google is saying

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The mail reads in part:

PAY ATTENTION: Install our latest app for Android, read best news on Nigeria’s #1 news app

“Due to new legislation in Nigeria, starting April 1, 2022, Google will be required to charge 7.5% VAT on all taxable goods and services. No action is required on your side with regard to your Google business account.” The amount of VAT charged on your purchases will appear as a separate line in your account. Your invoice or statement will show the amount of VAT charge."

Google showed some notable changes to the business account that would affect purchases and invoices.

What you should know

The new Finance Act recently signed by President Muhammadu Buhari states that Nigerians who shop online will start to pay the Value Added Tax (VAT) effective 2022.

Facebook, Instagram started charging Nigerians 7.5 VAT on adverts from January 1, 2022 in accordance with the new Finance Act.

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Meta, the parent company of Facebook and Instagram announced that it is due to the introduction of a tax on digital services that necessitated the social media giant to add VAT to its services in the country.

The United Kingdom charges businesses making supplies on digital services to UK consumers, the supplies are taxable under the VAT law in that country.

Egypt charges 14 per cent on all digital services carried out in the country which applies to companies’ annual sales of EGP 500,000 and above.

Facebook tells Nigerians to prepare for a 7.5% hike in value Added tax has reported that following the announcement of a new finance act that compels social media paying tax, Facebook has announced that Nigerian advertisers from January will be charged 7.5 percent value-added tax for using Facebook and also Instagram.

The social media giant said this in a statement issued on Thursday, 9 December 2021.


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