{"id":465,"date":"2022-03-07T16:24:44","date_gmt":"2022-03-07T16:24:44","guid":{"rendered":"https:\/\/kennysoftstudio.com\/blog\/?p=465"},"modified":"2022-03-07T17:17:08","modified_gmt":"2022-03-07T17:17:08","slug":"how-will-the-new-digital-tax-introduced-by-the-nigerian-government-affect-you-as-a-digital-marketer","status":"publish","type":"post","link":"https:\/\/kennysoftstudio.com\/blog\/how-will-the-new-digital-tax-introduced-by-the-nigerian-government-affect-you-as-a-digital-marketer\/","title":{"rendered":"How Will the New Digital Tax Introduced by The Nigerian Government Affect You as A Digital Marketer?"},"content":{"rendered":"\n
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On the 1st of January 2022 the Nigeria\u2019s federal government disclosed that henceforth it would charge offshore companies providing digital services to local customers in Nigeria a six per cent tax on turnover as provided in the 2021 Finance Act.<\/p>\n\n\n\n

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this during the public presentation and breakdown of the 2022 budget held in Abuja.<\/p>\n\n\n\n

Speaking further on the tax on digital services, she explained that it includes apps, high frequency trading, electronic data storage and online advertising, adding that, \u201cthis is introducing turnover tax on a fair and reasonable basis.\u201d<\/p>\n\n\n\n

The new policy is contained in Section 30 of the Finance Act which amended the provisions of Section 10, 31 and 14 on VAT obligations for non-resident digital companies.<\/p>\n\n\n\n

Ahmed said, \u201cSection 30 of the Finance Act designed to amend section 10, 31 and 14 of VAT is in relations to VAT obligations for non-resident digital companies and the mechanism that will be used is to restrict VAT obligations mainly to digital non-resident companies who supply individuals in Nigeria who can\u2019t themselves self-account for VAT.<\/p>\n\n\n\n

\u201cSo, if you visit Amazon, we are expecting Amazon to add VAT charge to whatever transaction you are paying for. I am using Amazon as an example. We are going to be working with Amazon to be registered as a tax agent for the FIRS.<\/p>\n\n\n\n

\u201cSo, Amazon will now collect this payment and remit to FIRS and this is in line with global best practices, we have been missing out on this stream of revenue.<\/p>\n\n\n\n

According to her, the new law applies to foreign companies that provide digital services such as apps, high-frequency trading, electronic data storage, online and advertising, among others.<\/p>\n\n\n\n

She noted that in line with Section 4 of the Finance Act, non-resident companies are now expected to pay tax at six per cent per cent on their turnover.<\/p>\n\n\n\n

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