Nigeria: VAT levy on online purchases

The Federal Inland Revenue Services of Nigeria has revealed it is planning to levy VAT on online purchases of goods and services via bank payment split payment.

Under the new plan, it will be mandatory for banks to withhold the VAT on any transactions between consumers and online suppliers.

The VAT element will be withheld by the banks at the standard 5% rate and be remitted directly to the government.

     If you’d like to find out more about how online purchases can be impacted by VAT, get in touch.