Nigeria plans new 5% tax for online purchases from 2020

Nigerians may pay five per cent Value Added Tax for online purchases when using bank cards by 2020.

This is coming from the the Federal Inland Revenue Service.

The FIRS Boss, Babatunde Fowler said the government was yet to take a decision on whether to increase VAT or not.

Online purchases are growing among Nigerians with online stores such as Jumia and Konga and also popular Chinese online store, Aliexpress.

Payments for such purchases are often made using bank debit and credit cards, and could soon attract the five per cent tax being considered by the FIRS.

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