Multinational tech company, Google, has announced that Nigeria-based advertisers will be charged 7.5 per cent value-added tax (VAT) on all advert placements from April 1, 2022.
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An announcement sent to all users in Nigeria by Google stated, “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.”
Recall that in December 2021, the Finance Bill 2022 was signed into law by President Muhammadu Buhari.
This comes as Nigeria attempts to expand its tax net for more tax revenues.
The new legislation allows the Federal Inland Revenues Service (FIRS) to charge non-resident firms like Twitter, Meta, Google, and Netflix.
Already, Facebook and Instagram had begun to charge the 7.5 per cent consumption tax in January and the social media company stated to users that, it was as a result of the new fiscal regime in Nigeria.
Also Facebook, earlier this month 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.
Already, many African countries have begun to make tax reviews on global digital services.
Countries like Zimbabwe, Kenya and Cameroon have implemented taxes on digital services.
Digital services such as online streaming, digital advertising, and e-commerce, among others, are being taxed across the continent, mostly in the form of consumption tax.
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