This is how Nigerians will pay for 7.5 percent VAT on Zoom
Zoom Video Communications, Inc. (Zoom) has stated that it will start charging 7.5 percent value-added tax (VAT) on customers in Nigeria from January 1, 2022.
The video messaging company said this in a statement issued on Monday. Last week, another social media giant, Facebook announced that Nigerians will pay the same amount on ads from January 1.
The company said the additional charge is due to the new VAT policy in Nigeria.
“For customers with a sold to address in Nigeria, Zoom will begin applying VAT to invoices and remitting the VAT collected through Zoom’s VAT registration in Nigeria in accordance with the new rules relating to Value Added Tax for Non-Resident Suppliers of Electronically Supplied Services,” the statement reads.
“Zoom is routinely evaluating its indirect tax collection and remittance obligations. The application of these taxes to businesses with online activities is a complex and evolving area.
“This applies if you are registered for VAT in Nigeria and if you are not registered for VAT in Nigeria.
“Zoom continues to review such developments, as well as the nature and extent of its activities in different jurisdictions, and, based on such regular review, will start charging indirect taxes where applicable.”
In carrying out this action, Zoom said customers who are registered for VAT in Nigeria are advised to provide their valid Taxpayer Identification Numbers (TINs).
“To provide your TIN, please complete the following steps:
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.”
The company said it will only be collecting VAT for invoices generated on or after January 1, 2022.
“Invoices prior to this date will not be impacted,” it added.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.