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Google says it will begin to charge 7.5 per cent value-added tax (VAT) on customers in Nigeria from April 1, 2022.
The tech giant revealed this in a statement over the weekend as it moved to comply with Nigeria’s legislation on VAT which came into effect on February 1, 2020, under the new Finance Act.
The statement explains that the VAT rate charge would be applicable to customers operating a Google business account.
Facebook and Zoom have started charging 7.5% VAT on all services provided to Nigerian customers.
Google’s statement reads: “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,” the company said.
“No action is required on your side with regard to your Google business account.”
Google said the amount of VAT charged on purchases would appear as a separate line in customers’ business accounts, adding that invoices or statements will also show the amount of VAT charged.
Read also: Nigerian advertisers on Facebook, Instagram to pay 7.5% tax from Jan 1
“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.”
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