Nigerian advertisers on Facebook were cautioned yesterday to update their Value Added Tax (VAT) records on the site by February 25, 2022, or face having their ads removed from the platform.
Following the Nigerian government’s decision to tax foreign-based social media firms that make money from Nigerian marketers, the warning was issued.
Nigeria President, Muhammadu Buhari forwarded the Finance Bill 2021 to the National Assembly on December 7, 2021.
One of the Bill’s most notable aspects is the provision empowering the Federal Inland Revenue Service (FIRS) to assess non-resident companies such as Twitter, Facebook, Google, and Netflix, among others, and tax them on fair and reasonable turnover earned from digital services orlivered to Nigerian customers.
The Finance Bill also instructs FIRS to select individuals to collect and remit non-resident taxes.
The Senate signed the act on December 21, 2021, after considering a report from the Senate Joint Committee on Finance, Customs, Excise, and Tariffs, Trade, and Investment.
In reactions, Facebook said last year that beginning January 1, 2022, all advertisers from Nigeria will be charged an extra 7.5 percent VAT on ad placement.
In an apparent effort to comply with the government rule, Meta, the owner of the social networking site, has asked its Nigerian subscribers to complete basic criteria.
Meta said in a statement that Nigerian subscribers must update their VAT identification numbers by February 25.
The business claimed it recently updated its software to allow select Nigerian subscribers to pay the 7.5 percent levy by providing an 11 or 12 number VAT identifier (ID).
It further said that people with a VAT ID may readily utilize receipts for other taxes paid.
“It was stated that some Nigerian subscribers were unable to submit their 11- or 12-digit VAT ID,” the article stated. Our system now accepts both 11- and 12-digit VAT IDs, due to a recent update. If you want your VAT ID to appear on your ad receipts, please change your VAT ID using the methods below.
Lastly, by February 25, 2022, if you have before submitted a VAT ID that is not 11 or 12 digits, make sure amend it.” After this date, all VAT IDs that do not meet the structure requirements will be canceled.
Your VAT ID will appear on your advertisements receipts if you are registered for VAT and give it. This may assist you reclaim any VAT you paid to the Nigerian tax authorities if you are entitled to it.”
“Go to payment settings, select “update” company details, scroll down to the area labelled “VAT ID” and enter your VAT ID,” Meta stated of the steps advertisers may take to add their VAT ID to their ad accounts.