News & Publications

By: Emmanuel Adefeso ESQ

Zoom Video Communications, Inc. (Zoom) says it will begin to charge 7.5 percent value-added tax (VAT) on customers in Nigeria from January 1, 2022.

According to the statement by the firm, the additional charge is due to the new VAT policy in Nigeria. For customers with 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 firm stated further that 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).

The announcement made by Zoom is coming few days after Facebook said Nigerians will start paying same amount on all ad placements from January 1, 2022. VAT stands for Value Added Tax. It is a tax payable on the supply of goods and services at different stages of product supply and service delivery value chain. The burden of the tax ultimately falls on the final consumer. As a consumption tax paid on all goods and services provided in or imported into Nigeria, VAT, which is currently charged at the rate of 7.5% is payable by individuals, companies, and government agencies, thus, the announcement by the communication Company is in compliance with extant laws and regulations on payment of VAT for service delivery in the communication sub-sector.