Nigerians will pay 7.5 percent value-added tax (VAT) on all ad placements from January 1, 2022, Facebook has revealed.

The social media giant in a statement issued on Thursday disclosed that the charge will apply to those buying ads for businesses or personal purposes in compliance with the implementation of a value-added tax (VAT) in Nigeria.

The statement noted that all those exempted from VAT would be able to recover the fund if they provided their tax ID.

"If you're registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts," it added.

"In the event that you're entitled to recover the VAT, this may help you recover any VAT you paid to the Nigerian tax authorities if you are a VAT registered business in Nigeria."

Facebook (now META) is the parent company of Instagram, FB Messenger, and Facebook social media channels.

We also learnt that the new 7.5 percent VAT charge will also apply to Instagram ads.