OpenAI to Start Charging 7.5% VAT in Nigeria from November 2025

OpenAI to Start Charging 7.5% VAT in Nigeria from November 2025 OpenAI has announced that it will begin charging 7.5% Value Added Tax (VAT) on its services in Nigeria… TechCity

Science/Technology Oct 27, 2025 0 11 Add to Reading List

OpenAI has announced that it will begin charging 7.5% Value Added Tax (VAT) on its services in Nigeria starting November 1, 2025. The company confirmed this in an email sent to Nigerian users, stating that the new tax policy complies with Section 10 of the Value Added Tax Act (as amended) and the FIRS Information Circular 2021/19.

The VAT will apply to all paid OpenAI services, including ChatGPT Plus subscriptions and other AI products billed in Nigeria.

OpenAI also advised users who have a Tax Identification Number (TIN) to add it to the billing section of their accounts to ensure proper tax documentation and compliance.

Nigeria Tightens Digital Tax Compliance

This move is part of Nigeria’s increasing efforts to enforce tax compliance among foreign digital companies operating in the country. The Federal Inland Revenue Service (FIRS) now mandates non-resident technology companies to collect VAT from users in Nigeria and remit it.

OpenAI now joins global tech companies like Google, Meta (Facebook), Netflix, and Amazon, which are already charging Nigerians VAT for their services. Reports show that Nigeria generated over ₦600 billion from VAT paid by foreign digital companies recently.

Officials insist no new taxes were introduced under President Tinubu’s administration. Instead, the focus is on widening the tax net and ensuring compliance. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy & Tax Reforms:

“I challenge anyone to point to one newly added tax. We are only enforcing existing laws.”

How the VAT Affects ChatGPT Users in Nigeria

The price of ChatGPT Plus, currently ₦31,500 ($20 per month), will increase after VAT is added. With 7.5% VAT included, users will now pay:

New Price: ₦33,862.50 ($22.43) per month

This price adjustment could also impact Nigerian startups that rely on OpenAI’s API, such as Decide and ChatATP, making their operating costs slightly higher.

Interestingly, OpenAI recently introduced a cheaper subscription tier priced at ₦7,000 per month for Nigerians. This may help cushion the effect of the VAT increase for users who need affordable access.