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In 2026, the ‘intangible’ nature of digital goods no longer exempts them from the Value Added Tax (VAT) net. Under the updated Nigeria Tax Act, any digital product consumed within Nigeria—regardless of where the seller is located—is subject to the standard 7.5% VAT.
What Qualifies as a Taxable Digital Product?
- Downloadable Content: eBooks, music, movies, and mobile apps.
- SaaS & Cloud: Monthly subscriptions for software or storage.
- Digital Ads: Payments made to social media platforms for targeted ads in Nigeria.
The NRS now uses the Merchant-Buyer Solution (MBS) to track these transactions. If you are a local creator, see How to File VAT to stay compliant. For international sellers, the Significant Economic Presence (SEP) rules apply. Visit the NRS website or VATupdate for the latest 2026 circulars.
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