Tax, tax, tax everywhere!
Social media giant, Facebook has announced that Nigerians will pay 7.5 percent value-added tax (VAT) on all ad placements in 2022.
Payment of the new 7.5% VAT charges comes into effect on January 1, 2022.
Clearly, the charge will apply to those buying ads for businesses or personal purposes.
Facebook statement said those exempted from VAT can recover the fund if they provide their tax ID.
It further revealed that the 7.5% VAT charge is applicable to Instagram ads.
In Ghana also the government is seeking to introduce a similar tax dubbed E-levy to raise more revenue for the next fiscal year.
The 1.75% E-Levy will be imposed on all electronic transactions but it has been vehemently opposed by majority of the citizens.
Some policy think tanks have advised government to drop the implementation of the killer tax as it will bring hardship on the people.
Read Facebook’s statement on the new 7.5% VAT charges below:
‘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 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’.
SOURCE: Kasatintin.com
