VAT Applicable Charges for Customer Subscriptions
Welcome to RightPay Africa, your trusted cloud-based software platform. As a responsible and transparent organisation, we are committed to providing clear information on how Value Added Tax (VAT) applies to your subscription charges. This page outlines what you need to know about VAT under the current Nigeria Tax Act, 2025 and its impact on your subscription.
1. What is VAT?
Value Added Tax (VAT) is a consumption tax charged on the supply of goods and services at each stage of production and distribution. In Nigeria, VAT is governed by the Value Added Tax framework as updated under the Nigeria Tax Act, 2025 and administered by the Federal Inland Revenue Service (FIRS). The tax burden is ultimately borne by the end consumer.
2. VAT Registration
In line with the Value Added Tax provisions under Nigerian tax law and the Nigeria Tax Act, 2025, RightPay Africa is registered with the Federal Inland Revenue Service (FIRS) for VAT purposes and holds a valid Tax Identification Number (TIN).
VAT Registration (TIN): 19758241-0001
VAT is charged and remitted in accordance with applicable Nigerian tax regulations.
3. VAT Application to Customer Subscriptions
RightPay Africa’s subscription services are classified as taxable supplies under Nigerian VAT regulations. As such, VAT is applicable to subscription fees charged to customers within Nigeria, except where exemptions apply under the law.
For customers outside Nigeria, VAT or similar consumption taxes may apply in line with the relevant tax laws of the customer’s jurisdiction.
4. Determining VAT Charges
VAT applicable to your subscription is determined based on the following:
a. Customer Location
Your billing and business address will be used to determine the applicable tax jurisdiction.
b. Applicable VAT Rate
The prevailing VAT rate under Nigerian law will be applied to subscriptions supplied within Nigeria, in accordance with the Nigeria Tax Act, 2025 and related regulations.
c. VAT Inclusive or Exclusive Pricing
Subscription fees may be displayed as VAT-exclusive, with VAT added at checkout, or as VAT-inclusive, depending on the pricing structure presented at the point of billing. The VAT amount will always be clearly stated on your invoice.
5. VAT Exemptions or Zero-Rating
Certain supplies may be exempt from VAT or zero-rated under Nigerian tax regulations. If you believe your organisation qualifies for VAT exemption or zero-rating under applicable laws, please contact our support team and provide the necessary documentation. Requests will be reviewed in line with regulatory requirements.
6. VAT Invoices
RightPay Africa provides detailed VAT-compliant invoices for all subscription payments. Each invoice will clearly state:
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The subscription amount
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The VAT charged (where applicable)
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The total amount payable
Invoices can be accessed and downloaded directly from your account dashboard for record-keeping and compliance purposes.
7. Updates and Changes to VAT Regulations
Tax regulations are subject to change. Where there are amendments to VAT laws, rates, or compliance requirements under the Nigeria Tax Act or any subsequent regulations, RightPay Africa will implement such changes promptly and reflect them in customer invoices and billing processes.
8. Professional Tax Advice
While we strive to provide accurate and up-to-date information regarding VAT, this page does not constitute tax advice. Customers are encouraged to seek independent professional advice from a qualified tax consultant or the relevant tax authority to fully understand their VAT obligations.
At RightPay Africa, we value your trust and remain committed to delivering reliable digital services while maintaining full compliance with Nigerian tax regulations. Should you have any questions regarding VAT or billing, please contact our customer support team for assistance.
Thank you for choosing RightPay Africa.
Yours sincerely,
The RightPay Africa Team
