7.5% VAT Expected On Business Ads On FB, Instagram From January 1, 2022

Facebook, (now META), one of the social media apps, has announced in a statement released on Thursday, that, starting from January 1, 2022, Nigerians are expected to pay 7.5% Value Added Tax, (VAT), on every advertisement on the platform.

 

According to the statement, the 7.5% charges applies to those buying ads for businesses, or for other personal purposes.

 

The statement reads.

“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 are buying ads for business, or personal purposes.”

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

 

The statement again revealed that, those who may not be required to pay VAT, are those exempted from payment of VAT; otherwise, there will be the need for businesses/individuals, to provide their tax ID, or to have proofs of VAT payments made to the Nigerian tax authorities.

 

“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.”

 

Facebook, as known, is the parent company of Instagram and FB Messenger, social media platforms. Therefore, the newly introduced 7.5% VAT charge is expected to apply to Instagram ads.

 

Information gathered also stated how the federal government on Wednesday, released the new finance bill, which empowers the Federal Inland Revenue Service, (FIRS), to assess, and charge companies for income tax, on any digital company with a significant presence in the country, just as a way of generating more revenue for the government.

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