OpenAI has announced that starting November 1, 2025, it will begin charging a 7.5% Value Added Tax (VAT) on all paid services billed in Nigeria, including its popular ChatGPT Plus subscription. This decision aligns with Nigeria’s digital tax regulations, specifically Section 10 of the Value Added Tax Act and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19, which mandate VAT collection on digital services provided to Nigerian users. The move places OpenAI among a growing list of global tech companies complying with local tax laws in countries that have introduced digital service taxes.
For Nigerian users, this means the monthly cost of ChatGPT Plus will increase from the standard $20 to approximately ₦33,862, factoring in the new VAT. OpenAI communicated the change via email to subscribers in Nigeria, advising those with a valid Tax Identification Number (TIN) to update their account details to ensure proper tax documentation. The company emphasized that the VAT would be added to invoices and that users should expect the change to reflect in their billing cycle from November onward.
This development marks a significant shift in the cost of accessing premium AI tools in Nigeria. While the free version of ChatGPT remains available, users who rely on the enhanced features of ChatGPT Plus, such as faster response times, priority access during peak usage, and access to advanced models, will need to factor in the additional tax when budgeting for the service. The VAT implementation also reflects Nigeria’s broader efforts to increase revenue from the digital economy, as more citizens and businesses adopt online platforms for work, learning, and communication.
OpenAI’s compliance with Nigerian tax law is part of a wider global trend where tech firms are adapting to local fiscal policies. As more countries introduce digital service taxes, users may see similar changes in pricing structures across various platforms. For now, Nigerian subscribers are encouraged to review their billing details, ensure their TIN is correctly entered, and prepare for the adjusted cost of their subscriptions. This change underscores the growing intersection between technology and taxation, as governments seek to regulate and benefit from the expanding digital landscape.