From November 1, 2025, Nigerian users of ChatGPT will pay higher subscription fees as OpenAI begins applying a 7.5% Value Added Tax (VAT) on all paid services, in line with Nigeria’s tax regulations.
Gatekeepers News reports that the new charge will affect all billable OpenAI offerings, including ChatGPT Plus, raising the monthly subscription from ₦31,500 ($20) to approximately ₦33,862.50 ($22.43).
In an email to users, OpenAI said the adjustment complies with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.
TIN Now Required for Subscriptions
The company also urged subscribers to include their Tax Identification Number (TIN) in their payment settings to ensure accurate tax documentation and compliance.
OpenAI’s compliance places it alongside other major technology firms — Google, Netflix, Amazon, and Meta — which already charge VAT on digital services in Nigeria. Authorities say the move is part of efforts to expand the country’s digital tax base and improve compliance among non-resident service providers.
While the policy is expected to boost government revenue, analysts note that it could raise operational costs for Nigerian startups and professionals who rely on AI tools for productivity and innovation.
Part of Nigeria’s Expanding Digital Tax Net
Under Nigeria’s updated VAT framework, foreign digital companies offering services to Nigerian users must collect VAT and remit it directly to the FIRS.
Government officials maintain that the measure does not introduce new taxes but merely enforces existing laws and strengthens compliance.
Last December, the National Information Technology Development Agency (NITDA) disclosed that global digital companies such as Google, Microsoft, and TikTok paid a combined ₦2.55 trillion in taxes in the first half of 2024.
Similarly, in September 2025, the Special Adviser on Tax Policy to the Chairman of the Tax Reforms Committee, Mr. Mathew Osanekwu, revealed that Nigeria collected over ₦600 billion in VAT from foreign digital platforms including Facebook, Amazon, and Netflix.
“These are not Nigerian entities, but they are now paying VAT under Section 10 of the VAT Act. They are registered in Nigeria and appointed as agents of collection,” Osanekwu said during a media workshop in Abuja.
He added that the development aligns with global best practices, ensuring that Nigeria benefits from taxes on services consumed locally but delivered by foreign firms.
