ICANBusiness, Management and FinanceMarketing Fundamentals2020

Under the Value Added Tax Act Cap V1, LFN 2004 (as amended by the Finance Act 2020), which of the following marketing-related services supplied by a Nigerian advertising agency to a foreign client qualifies as zero-rated for VAT purposes?

AAdvertising services rendered to a Nigerian government ministry
BDigital marketing services exported to a non-resident foreign company with payment received in foreign currencyCORRECT
COutdoor billboard advertising for a domestic fast-food chain
DSocial media management services for a Nigerian bank
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
The VAT Act (as amended by the Finance Acts 2019 and 2020) zero-rates exported services where the supply is made to a person outside Nigeria and the payment is received in foreign currency remitted to Nigeria. Services rendered to Nigerian government entities, domestic businesses, or local banks are standard-rated at 7.5%. Zero-rating allows the supplier to recover input VAT while charging no output VAT.
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