Starting from April 1, 2022, Google will charge Nigerian customers 7.5% VAT on all taxable goods and services.
Gatekeepers News reports that the American multinational technology company made the announcement in an email sent out to its business account holders on Tuesday.
“Due to new legislation in Nigeria, starting April 1, 2022, Google will be required to charge 7.5% VAT on all taxable goods and services. No action is required on your side with regard to your Google business account,” Google said in the email.
Google noted that the 7.5% VAT is in line with the Nigerian government’s new law.
The technology company stated that it will not be saying anything further on the matter and advised business account holders to contact their tax advisers.
“Google can’t advise you on tax matters, so please contact your tax adviser for any questions regarding this change,” it said in the mail.
Gatekeepers News reports that the Federal Government of Nigeria in January 2022 asked all non-resident digital firms to pay a VAT 6%.
Minister of Finance, Budget and National Planning, Zainab Ahmed said that the new tax is stated in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.
Ahmed explained that Section 4 of the Act made provisions for the taxation of e-commerce businesses by non-resident companies on a fair and reasonable turnover basis, set at 6% of turnover.
