Facebook To Start Charging 7.5% VAT On Nigerian Advertisers In January, 2022

Social media giant, Facebook said on Friday that it would begin to apply a Value Added Tax on Nigerians Advertising on its platform, beginning from 1st January, 2022.

Facebook in a statement sent to its subscribers from the country informing them of the development said all advertisers are henceforth required to pay VAT irrespective of whether buying Ads for personal use or for business.

It further added that all advertisers with a business country of Nigeria will be made to pay an additional 7.5% VAT on advertising services with effect from the said date.

This development according to the Tech Company is in compliance with the newly introduced tax policy by the Nigerian Government.

"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 VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria.", the statement read in part.