Amazon Web Services EMEA SARL (“AWS Europe”) is the seller of AWS cloud services for your accounts based in these countries and territories in Europe, the Middle East, and Africa, including Nigeria.
AWS Europe is required to charge local Value Added Tax (“VAT”) on sales of electronic services to all customers in Nigeria.
If you have accounts located in Nigeria, AWS Europe charges local VAT on all invoices dated from 1 February 2021.
For invoices dated from 1 February 2022, AWS Europe is a VAT Collection Agent in accordance with Section 10 (3) of the Nigerian VAT Act. For customers with AWS accounts located in Nigeria, this means that:
- For invoices dated from 1 February 2022:
- You should pay the “TOTAL AMOUNT” (i.e. including VAT) to AWS Europe.
- AWS Europe will remit the “TOTAL VAT” amount directly to the Federal Inland Revenue Service (“FIRS”).
- You should not pay the “TOTAL VAT” amount to FIRS.
- For invoices issued dated from 1 February 2021 to 31 January 2022:
- You should only pay the “Charges” amount to AWS Europe.
- You should not pay the “TOTAL VAT” amount to AWS Europe.
- You should pay the “TOTAL VAT” amount to FIRS.
How does AWS determine if your account located in Nigeria?
At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your TRN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.
If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or the TRN of the payer account. The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page.
Please click here for additional information.
For additional information on the application of VAT in Nigeria, please visit the website of the FIRS.