VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied in (i.e., consumed or otherwise utilised) Nigeria. It is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning electronically supplied services by non-resident service providers to businesses (B2B) and consumers (B2C) in Nigeria.
Zoom has been appointed a non-resident VAT collector for B2B and B2C supplies of electronically supplied services in Nigeria. As such, Zoom is required to charge VAT on all taxable supplies made to customers in Nigeria.
A Taxpayer Identification Number (TIN) is a unique 12-digit number (in the format 12345678-1234) issued by the Federal Inland Revenue Service (FIRS) in Nigeria that identifies taxpayers in Nigeria.
Where you have provided your TIN to Zoom, this will show on invoices issued to you by Zoom.
To enter your TIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Yes. Zoom is registered for VAT in Nigeria and is appointed a non-resident VAT collector for the purposes of B2C and B2B supplies of electronically supplied services. Zoom’s TIN will be shown on the invoice it issues to you.
Zoom will apply VAT if the location of the “Sold To” contact address entered by the customer is in Nigeria. This information is subject to cross-referencing against other data to verify that the ‘Sold to’ country is accurate. It is your responsibility as a customer to ensure that your ‘Sold to’ address is accurate.
No, all supplies of electronically supplied services to customers in Nigeria are subject to Nigerian VAT.
No, all services currently provided by Zoom to customers in Nigeria are subject to Nigerian VAT.
No, there are no exemptions from VAT available under Nigerian VAT rules for the services Zoom supplies to charities in Nigeria.
In limited circumstances, specified companies - including money deposit banks - may be required to withhold VAT charged on supplies made to them by Zoom. This is in accordance with “Public Notice Value Added Tax Act (Cap V1, LFN 2004) (As Amended): Appointment of Certain Companies to Withhold VAT”.
If this applies to you, please contact Billing on receipt of your invoice(s) so that the open balance of your invoice(s) can be decreased to reflect the VAT that will be withheld and paid to the Federal Inland Revenue Service (FIRS) by you.
If you have already paid the invoice(s) in full, the withholding VAT amount will be maintained as a credit on your account and can be applied against future invoice(s). Alternatively, you can request a refund of the VAT withheld by chatting with Billing. If your account is set to autopay, DUR (electronic payment), the credit will automatically be applied to your next invoice.
If the invoice(s) has not been paid in full, the VAT amount withheld will be deducted from the open invoice balance so that payment can be made, less the VAT amount.
Yes, VAT applies to all the supplies that Zoom makes to customers in Nigeria.
No, the customer in principle has no VAT obligations. If you are registered for VAT in Nigeria and you want to claim the VAT charged to you by Zoom, as a minimum, you should ensure to keep a copy of Zoom’s invoice for your records.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules in Nigeria. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.