Like Facebook, Zoom has also announced that it will charge 7.5 per cent from Nigerian users on each advert placement from January 1, 2022.
Zoom Video Communications Inc. announced on Monday, December 13 that it would begin to charge 7.5 percent value-added tax (VAT) on customers in Nigeria from January 1.
The company said this is due to the new VAT policy in Nigeria. Customers who are registered for VAT in Nigeria are advised to provide their valid Taxpayer Identification Numbers (TINs).
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The statement read, “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.
“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.
“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.”
Recall that Facebook last Thursday announced in a statement that Nigerians would pay 7.5 per cent value-added tax (VAT) for advert placements ad.
The charge will apply to adverts running on Facebook for business or personal purposes.
According to the statement, “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.
“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.
“In the event that you’re entitled to recover the VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria.”
Facebook which recently changed its name to META is the parent company of WhatsApp, Instagram, Facebook Messenger, and Facebook.
The new 7.5 per cent VAT charge will also apply to adverts on Instagram.
