- Nigeria’s tax reforms have created a split in VAT treatment between traditional healthcare (zero-rated) and digital health services (subject to VAT).
- Telemedicine, health app subscriptions, and online pharmacy platforms now face VAT compliance requirements, unlike in-person medical services.
- Providers offering both physical and digital services must navigate mixed VAT treatments, complicating tax recovery and increasing audit risks.
- Essential healthcare services and products remain VAT-exempt, and providers can recover input VAT on equipment and operational expenses.
- The compliance burden is increasing with the introduction of digital tax administration, requiring electronic invoicing and real-time VAT reporting.
Source: businessday.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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