Meta, formerly known as Facebook, has urged Nigerian marketers on its platform to update their Value Added Tax (VAT) data to the site by February 25 or face having their advertisements removed from the platform.
The warning came in response to a federal government’s decision to tax foreign-based social media firms that generate money from Nigerian marketers.
President Muhammadu Buhari sent the Finance Bill 2021 to the National Assembly on December 7, 2021, which was signed by the Senate on December 21.
One of the key points of the Bill is the provision of legal authority to the Federal Inland Revenue Service (FIRS) to evaluate non-resident firms such as Twitter, Facebook, Google, and Netflix, among others, and tax them on fair and reasonable turnover earned from digital services provided to Nigerian customers.
Meta said last year that all Nigerian advertisers would be charged an additional 7.5% VAT on ad placement beginning January 1, 2022.
Writing by Omotola Oguneye; Editing by Saadatu Albashir and Tony Okerafor