Ecommerce Sector to Shrink As Nigeria Begins Collecting 5% Online VAT Next Year

The Head of Nigeria’s tax agency has spoken: online 5% VAT is coming next year.  The Federal Inland Revenue Service (FIRS) Chairman, Tunde Fowler, was clear, “We are thinking that maybe early next year, we will advise banks to start deducting five percent VAT for all online purchases done locally.” Forget that “maybe”, this is a concluded matter; banks will hit you 5% for any transaction processed online via your Nigeria-issued debit/credit card. “With the existing laws in Nigeria, we can appoint the banks as agents. First of all, all those who make payments for purchases online using bank cards … Continue reading Ecommerce Sector to Shrink As Nigeria Begins Collecting 5% Online VAT Next Year