Social Media giant Facebook set to implement FG’s VAT policy on Ads

The federal government of Nigeria has asked Facebook a subsidiary of Meta to comply and implement the “VALUE ADDED TAX” Policy on Ads shown and bought in the country by either individuals or businesses.

In response to the FG’s demand, Facebook has sent notifications to the platform’s users in Nigeria informing them of implementation of the FG’s VAT policy. It reads thus;

“Due to implementation of a value-added tax (VAT) in Nigeria, Facebook is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes. All advertisers with a business country of Nigeria will be charged an additional 7.5% VAT on advertising services purchased beginning 1 January 2022.”

“If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts. In the event that you’re entitled to recover VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria.”

How to add your VAT ID to your ad account:

• Go to Payment Settings

• Click “Open Payment Settings” and click “Edit” under “Business Info”

• Scroll down to the field “Tax ID Number”

• Add your Nigeria VAT ID

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