Video conference app, Zoom has notified its users in Nigeria it will start charging value-added tax, VAT, on its use. The information is coming in a few days after the social media giant Facebook, states it will charge 7.5% VAT on all Advertisements (Ads) done on its platform.

More tech companies will start charging VAT in 2022. This is as a result of a new rule for Value Added Tax for Non-Resident Suppliers of Electronically Supplied Services.

The indirect tax will be charged to all paid users of the video conferencing service and will be included in the invoice issued by the company at the point of sale.

Zoom customers have consequently been advised to add their Tax Identification Number (TIN) to their account.

VAT is a consumption tax charged on Vatable goods and services. These goods and services include all goods except those related to education. The tax is an income, not to the state government but to the federal government of Nigeria.

Zoom will commence VAT charges on or after 1st January 2022. More so, customers will not be charged on invoices in the remaining parts of this year. This is also true of Facebook. The Metaverse company had explained that it will start charging the indirect tax from January 1, 2022, on Ads.

The government of Nigeria has been seeking new ways to earn income and also to regulate certain sectors of the economy. This year, it introduces VAT on phone calls. Government is also slated to regulate video streaming companies like Netflix and EbonyLife TV.