Starting November 2025, OpenAI will add a 7.5% VAT to ChatGPT Plus and other AI services in compliance with Nigeria’s digital tax regulations.
OpenAI has announced that it will begin charging a 7.5% Value Added Tax (VAT) on all paid services in Nigeria starting November 1, 2025, in compliance with local tax laws governing non-resident digital companies.
In an email sent to Nigerian users this week, the company said the change aligns with Section 10 of the Value Added Tax Act (as amended) and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19. The tax will apply to all paid Open products, including ChatGPT Plus subscriptions and Application Programming Interface (API) services billed in Nigeria.
OpenAI also advised users with a Tax Identification Number (TIN) to add it to their account billing section to ensure proper documentation and compliance.
The move comes as Nigeria steps up enforcement of its digital tax policy, requiring foreign technology firms to collect and remit VAT on transactions with Nigerian users. The FIRS has said the measure ensures a level playing field between local and global companies operating in the country’s growing digital economy.
Read Also: AI Becomes Core Engine Driving Semiconductor Devices Growth
OpenAI joins a list of multinational firms — including Google, Meta, Amazon, and Netflix — that have begun charging Nigerian users VAT in recent years. According to government data, Nigeria generated over ₦600 billion in VAT revenue from foreign digital services in the past year.
Officials have emphasized that this does not represent a new tax but an enforcement of existing laws. Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said:
“I challenge anyone to point to one newly added tax. We are only enforcing existing laws.”
For ChatGPT Plus subscribers in Nigeria, the VAT will raise the monthly fee from ₦31,500 ($20) to about ₦33,862.50 ($22.43). Businesses relying on OpenAI’s API tools are also expected to face slightly higher operating costs.
However, OpenAI recently launched a more affordable tier priced at around ₦7,000 per month, which may help cushion the impact for cost-conscious users.
The VAT implementation marks another milestone in Nigeria’s push to formalize taxation within its booming digital economy. It underscores a broader global trend in which governments are tightening tax rules around cross-border digital services, ensuring major tech firms contribute to local revenues.
