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Nigeria’s VAT Reform Creates Divide Between Digital and Traditional Healthcare Services

  • 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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