OpenAI Adds 7.5% VAT for Nigerian Users from November

ChatGPT users in Nigeria will face higher subscription costs starting November 1, 2025, as OpenAI implements a 7.5% value-added tax (VAT) on all paid services in compliance with Nigerian tax regulations.

The VAT will apply to all billable OpenAI offerings, including ChatGPT Plus, raising the monthly subscription fee from N31,500 ($20) to roughly N33,862.50 ($22.43). Users are advised to provide their Tax Identification Number (TIN) in payment settings to ensure accurate tax documentation.

This move aligns OpenAI with other global digital service providers such as Google, Netflix, Amazon, and Meta, which have already begun charging VAT for their services in Nigeria. The implementation of VAT on foreign digital services is part of the government’s strategy to expand the tax base while generating revenue from non-resident companies operating within the country.

Recent figures indicate that foreign digital platforms have contributed billions of naira in VAT revenue, with the Federal Inland Revenue Service empowered under Section 10 of the VAT Act to require non-resident digital companies to collect and remit taxes directly. Government officials emphasized that the measure does not create new taxes but ensures compliance and captures revenue from services consumed locally.

While this aligns Nigeria with global best practices, it may lead to higher operational costs for startups and businesses relying on AI tools, as subscription expenses rise under the new tax framework.