Technology giant, Google, has said Nigerians using its platform to do business will start paying 7.5 per cent as value-added tax, VAT, from April 1, 2022.
Google said in a statement that the new rate was in a bid to comply with Nigeria’s legislation on VAT which came into effect on February 1, 2020, under the new Finance Act.
The tech giant said the VAT rate charge would be applicable to customers operating a Google business account.
The Company said:
“Due to new legislation in Nigeria, starting April 1, 2022, Google will be required to charge 7.5 percent 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 purchases would appear as a separate line in customers’ business accounts and invoices or statements will also show the amount of VAT charged.
“Notable changes to customers’ 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” .
It added: “Google can’t advise you on tax matters, so please contact your tax adviser for any questions regarding this change.”
Already, Facebook and Zoom have started charging 7.5 per cent VAT on all services provided to Nigerian customers.
