January 29, 2022

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Zoom joins Facebook in Charging VAT in Nigeria

Zoom joins Facebook in Charging VAT in Nigeria
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The video conference app, Zoom has notified the public that it will start charging value-added tax, VAT, on its use in Nigeria. The information is coming in a few days after the social media giant Facebook, states it will charge 7.5% VAT on all Advertisements (Ads) done on its platform.

More tech companies will start charging VAT in 2022. This is as a result of a new rule for Value Added Tax for Non-Resident Suppliers of Electronically Supplied Services, says, The Cable. The indirect tax will be charged to all paid users of the video conferencing service. The charges will be included in the invoice sent by the company.

Zoom customers are advised to add their Tax Identification Number (TIN). To do this, the following steps can be applied.

  • Sign in to the Zoom Portal.
  • In the navigation panel, click Account Management, then Billing.
  • Click the Billing Information tab.
  • Under Sold to Contact, choose to edit the TIN (which appears after the Sold to Contact Address field).
  • Enter your TIN and click save.
  • You are required to notify us if there is a change in your VAT registration status.
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VAT is a consumption tax charged on Vatable goods and services. These goods and services include all goods except those related to education. The tax is an income, not to the state government but to the federal government of Nigeria.

Zoom will commence VAT charges on or after 1st January 2022. More so, customers will not be charged on invoices in the remaining parts of this year. This is also true of Facebook. The Metaverse company had explained that it will start charging the indirect tax from January 1, 2022, on Ads.

The government of Nigeria has been seeking new ways to earn income. And also to regulate certain sectors of the economy. This year, it introduces VAT on phone calls. This is amid huge debts it owes locally and internationally. It is also slated to regulate video streaming companies like Netflix and EbonyLife TV.

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