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Like Facebook, Social Media App, Zoom to Start Charging 7.5% VAT From Nigerian Users

Published

3 years ago

Dec 14, 2021.

Social Media App, Zoom To Start Charging 7.5% VAT From Nigerian Users

EKO HOT BLOG reports that Zoom Video Communications, Inc. (Zoom) has announced that starting January 1, 2022, it will charge customers in Nigeria a 7.5 percent value-added tax (VAT).

This was stated in a statement released on Monday by the social media behemoth.

7.5% Zoom VAT From Nigerian Users

The additional charge is due to Nigeria’s new VAT policy, according to the statement. This comes just days after Facebook announced that beginning January 1, 2022, Nigerians will pay the same amount for all ad placements.

“For customers with a sold to address in Nigeria, Zoom will begin applying VAT to invoices and remitting the VAT collected through Zoom’s VAT registration in Nigeria in accordance with the new rules relating to Value Added Tax for Non-Resident Suppliers of Electronically Supplied Services,” the statement read.

“Zoom is routinely evaluating its indirect tax collection and remittance obligations. The application of these taxes to businesses with online activities is a complex and evolving area.

“This applies if you are registered for VAT in Nigeria and if you are not registered for VAT in Nigeria.

“Zoom continues to review such developments, as well as the nature and extent of its activities in different jurisdictions, and, based on such regular review, will start charging indirect taxes where applicable.”

In carrying out this action, Zoom said customers who are registered for VAT in Nigeria are advised to provide their valid Taxpayer Identification Numbers (TINs).

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