Google Issues 7.5% VAT Charge for Nigerians as FG Taxes Tech Companies

• Google has informed its Nigerian users that it would demand 7.5% VAR on all taxable goods and services from April 1st, 2022

• The VAT charge issued by the company will appear as a separate line in the user’s account

• This comes after the Nigerian government announced a new regulation that demands 7.5% Value Added Tax on advertisement and services sold by tech companies in Nigeria

Google has announced that from April 1, 2022, it will begin to charge 7.5% VAT on all taxable goods and services purchased by Nigerian users. The disclosure was contained in a recent mail that the company sent to Nigerians on Tuesday.

The tech giant disclosed that the amount of VAT charged on purchases will appear in a separate column on the user’s account.

A part of the mail reads:

“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 charged.”

The tech giant’s new levy is similar to one that was imposed by Facebook and Instagram on adverts since January 1st, 2022. The two social media companies now accept a 7.5% VAT charge on all advertisements done by Nigerians.

This change is due to a regulation that the federal government released last year, demanding a 7.5% VAT charge for ads on social media platforms.

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