According to Vanguard Newspaper, the warning followed Federal Government’s resolve to tax foreign-based social media platforms, which earn money from Nigerian advertisers.
It would be recalled that on December 7, 2021, President Muhammadu Buhari sent the Finance Bill 2021 to the National Assembly.
It was gathered that one of the major highlights of the bill is the aspect equipping the Federal Inland Revenues Service (FIRS) with the power to evaluate non-resident firms like Twitter, Facebook, Google, and Netflix and tax them on fair and reasonable turnover earned from digital services to Nigerian customers.
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In response, Facebook last year announced that all advertisers from Nigeria would pay an additional 7.5 percent VAT on ad placement from January 1, 2022.
The social media platform’s parent company, Meta, in an apparent bid, to comply with the government regulation and also requested its Nigerian customers to carry out basic requirements to help its compliance.
In a statement released, Meta charged Nigerian customers to update their VAT identification numbers by February 25.
It was said that the company said it made recent updates to allow some Nigerian customers to provide 11 or 12 digit VAT identification (ID) to pay the 7.5 percent charge. It also added that those who already have their VAT ID can easily use receipts for other paid taxes.