Facebook says Nigerians will pay 7.5 percent value-added
tax (VAT) on all ad placements from January 1, 2022.
The social media giant said this in a statement issued on
According to the statement, the charge 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,” the statement reads.
“All advertisers with a business country of Nigeria will be
charged an additional 7.5% VAT on advertising services
purchased beginning 1 January 2022.
The statement added that those exempted from VAT
would be able to recover the fund if they provided their tax
“If you’re registered for VAT and provide your VAT ID, your
VAT ID will show up on your ads receipts,” it added.
“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
Facebook (now META) is the parent company of
Instagram, FB Messenger, and Facebook social media
TheCable understands that the new 7.5 percent VAT
charge will also apply to Instagram ads.
The federal government is currently working on modalities
to tax the digital economy and improve revenue. President
Muhammadu Buhari had transmitted the 2021 Finance Bill
to the national assembly.
On Wednesday, TheCable reported that the bill empowers
the Federal Inland Revenue Service (FIRS) to assess and
charge companies income tax (CIT) on any digital
company with a significant presence in the country, such
as Facebook, Twitter, AliExpress, others.
If passed into law, it will increase government revenue and
widen the tax net in a cash-strapped economy.