ChatGPT to cost more in Nigeria as OpenAI adds 7.5% VAT
- OpenAI will begin collecting 7.5% VAT on its services in Nigeria starting November 1, 2025.
- The VAT will apply to all paid subscriptions, including ChatGPT Plus.
- Users are advised to include their Tax Identification Number (TIN) for proper tax documentation.
The implementation of VAT by OpenAI reflects a broader trend of increasing tax compliance among foreign digital service providers in Nigeria. While this could bolster government revenue, it raises concerns about affordability for users and the potential strain on local startups. A balanced approach is necessary to ensure that taxation does not stifle innovation in the burgeoning tech sector.
