spot_img

Nigerian ChatGPT Users to Pay More as OpenAI Introduces 7.5% VAT

spot_img

OpenAI has announced that it will begin applying a 7.5% value-added tax (VAT) to all its paid services for users in Nigeria starting November 1, 2025.

The new tax policy will affect subscriptions such as ChatGPT Plus and other billable OpenAI offerings.

In an email to Nigerian users, the company explained that the adjustment aligns with Section 10 of the Value Added Tax Act (as amended) and the FIRS Information Circular 2021/19, which require foreign digital service providers to charge and remit VAT.

OpenAI advised subscribers to add a valid Tax Identification Number (TIN) to their payment settings for accurate tax documentation.

This comes as Nigeria intensifies efforts to ensure tax compliance among global tech firms operating in its digital economy.

Similar policies have already been adopted by companies like Google, Netflix, Amazon, and Meta, which now include VAT in their charges to Nigerian users. Reports indicate that the Federal Inland Revenue Service has already collected nearly โ‚ฆ600 billion in VAT from foreign digital firms.

For ChatGPT Plus subscribers, the new tax means monthly payments will rise from โ‚ฆ31,500 (about US$20) to โ‚ฆ33,862.50 (about US$22.43). However, OpenAI has introduced a lower-cost subscription tier of โ‚ฆ7,000 per month to cushion the impact on Nigerian users.

The change could also ripple across Nigeriaโ€™s tech ecosystem, with local AI-driven startups like Decide and ChatATP expected to face higher operational costs due to the tax.


How do you think this will affect the accessibility of AI tools for everyday Nigerians, especially students and small developers who depend on ChatGPT for research and work?
0
How do you think this will affect the accessibility of AI tools for everyday Nigerians, especially students and small developers who depend on ChatGPT for research and work?x
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Oldest
Newest Most Voted
[WEEK 8] Nigerian National Assembly has passed a bill for the creation of state police. Some say it will improve security; others fear abuse by states.
WHERE DO YOU STAND ON THE CREATION OF STATE POLICE IN NIGERIA?
spot_img
JolibaLive News!
JolibaLive News!https://joliba.com.ng
JolibaLive | The Information Marketplace ๐ŸŒ Citizen's companion. Democratized journalism
CCDJ iRadio8.59

Click Target ๐Ÿ’  For Your Local Weather Update

Lagos
broken clouds
25.4 ° C
25.4 °
25.4 °
90%
1.5m/s
70%
Sat
36 °
Sun
33 °
Mon
35 °
Tue
32 °
Wed
25 °

Follow Us

1,563FansLike
11FollowersFollow
0FollowersFollow
0FollowersFollow
34FollowersFollow
4SubscribersSubscribe

Subscribe to our Newsletter

Latest news updates sent each morning direct to your mailbox.

Latest Articles