Facebook now known as Meta, has announced that as from January 1 2022, all Facebook ads in Nigeria will attract 7.5% Value Added Tax whether for personal or business purposes.
This means that when budgetting for your marketing spend for 2022, you need to factor in 7.5% for VAT. According to a statement released by the social media giant, “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.”
It added that “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.” the statement adds.
“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,” a part of the statement said.
To add the VAT ID to user’s Facebook ad account
- Go to Payment Settings
- Scroll down to Business Info
- Click on Edit.
- When the Tax information window opens, scroll down to the field Tax ID Number and add your Nigeria VAT ID.
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