ChatGPT Subscriptions in Nigeria to Increase as OpenAI Implements 7.5% VAT
Nigerian users of ChatGPT and other OpenAI services should prepare for a slight price increase. Starting November 1, 2025, OpenAI will begin adding a 7.5% Value Added Tax (VAT) to all paid subscriptions within the country, impacting services like ChatGPT Plus. This adjustment reflects Nigeria’s ongoing efforts to broaden its tax base by including foreign digital service providers.
Understanding the VAT Implementation
OpenAI communicated this upcoming change to its Nigerian user base via email, citing compliance with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended) and the FIRS Information Circular 2021/19. This means the 7.5% VAT will be applied to all paid subscriptions, encompassing ChatGPT Plus and any other OpenAI offerings billed in Nigeria. For users possessing a Tax Identification Number (TIN), OpenAI recommends adding this information to their account’s payment section to ensure accurate tax documentation.
This move aligns with similar implementations by other major tech companies operating in Nigeria. Companies like Google, Netflix, Facebook, and Amazon have already integrated VAT charges for Nigerian users, demonstrating a growing trend of tax compliance among foreign digital service providers in the Nigerian market. This VAT implementation by OpenAI underscores the increasing regulatory landscape for digital services in Nigeria and its impact on consumers.
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