Just In: Nigerians To Start Paying 7.5% VAT On Google Play Purchases From April 1

Google has announced that the Federal Government directives through the Minister of Finance, of a new VAT charge rate will apply to purchases on the platform effective starting from 1st April 2022.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed had made the announcement of charging foreign companies tax on purchases made in Nigeria following the lifting of ban on Twitter.

Google has now stated that the company will be responsible for determining, charging, and remitting 7.5% VAT to Nigeria for all Google Play Store paid app and in-app purchases made by customers in Nigeria effective on April 1, 2022.

For Nigerian companies previously collecting VAT in Nigeria through Play Console, they will no longer control this setting. If located in Nigeria, Google will also be applying 7.5% VAT on the service fee charged on purchases made by customers globally.

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