When Zacchaeus the Tax Collector climbs onto the Facebook tree around this time of the year, it may not be exactly a perfect way to start the Christmas Season.
Facebook’s parent company, Meta, has just announced that advertisements on the popular social media platform in Tanzania are now being subjected to be charged Value Added Tax effective.
Taxes on Facebook in Tanzania get charged from the first day of December 2023.
“Beginning on the first of December 2023, Facebook ads in Tanzania are subject to a value-added tax (VAT) charged at 18 percent,” a statement from Meta declared.
The technology corporation revealed in a statement that Value Added Tax being imposed on Facebook will apply to individuals who use the platform as a means to market, promote and sell their products.
Apparently this applies to all advertisers whose ‘Sold To’ country on their business or personal address is set to Tanzania and who have not yet added their Value Added Tax Registration Number (VAT ID) to their Facebook ad account,’’ the statement clarifies.
Meta, which is a multinational technology conglomerate based in Menlo Park, California in the United States, owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services.
Tanzania Revenue Authority (TRA) which is the overall taxman in the country has been yearning for new sources of revenue to add to the already myriad taxed channels to broaden the country’s tax collection base.
Social Media platforms such as Facebook, Twitter, Tik-Tok, Instagram and even WhatsApp seem to be lucrative digital cash cows ready to be milked.
Tanzania’s Northern Neighbor, Kenya has already been paying 16 Percent Value-Added Tax on Facebook, an arrangement which started back in November 2022.
Now the American social media giant seems to be also complying with the new digital service tax being imposed by the Tanzania Revenue Authority, South of the Kenyan border.
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