Facebook introduces VAT in Nigeria, shorter working days in the UAE
Issue #19
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Today we are looking at:
UAE Adopt a four-day workweek
Nigerians to pay 7.% VAT on Facebook Ads
Fewer Working Days in the UAE
For a lot of people, working 5 days a week can be a very tedious routine. Though remote work (occasioned by COVID) has reduced the hours people spend in the office, people still consider it a drag working 5 days a week.
That’s why the United Arab Emirate (UAE) government has announced that starting January 1, 2020, the country would adopt a new workday system - a 4 1/2 day system. This means that federal workers would work from 7:30 a.m to 3:30 p.m from Monday to Thursday and 7:30 a.m to noon on Friday.
The government also announced a change from Friday-Saturday weekend, which is common to Gulf countries in the region, to a Saturday-Sunday weekend to match with the Western schedule.
Why the Transition?
The United Arab Emirates through this shift attempts to attract more investment that matches the global market. The government also seeks to boost productivity and improve work-life balance.
A Changing Work System
Industries have seen a change in working systems over the world since the pandemic. With workers adopting flexible working hours, working from home, and/or opting for hybrid systems that incorporate both.
A shortened number of workdays is said to increase productivity and reduce stress and burnout among workers. There are however disadvantages to this system, one of which is it not being favourable to workers in the private sector and workers that do long hours of work shifts.
Read this analysis of the four-day week here and here.
Other countries to try out a four-day week include Iceland and Spain.
On December 1st, Kaduna State in Nigeria began the transition into a four-day workweek system.
Facebook introduce 7.5% Tax For Adverts From Nigeria
Starting from 1st January 2022, Facebook has announced that Nigerians will pay 7.5 per cent value-added tax (VAT) for all ad placements. The charge will apply to adverts running on Facebook for business or personal purposes.
According to the statement released by Facebook, “Due to implementation of a value-added tax (VAT) in Nigeria, Facebook is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes.”
The statement added that those exempted from VAT would be able to recover the fund if they provided their tax ID. “If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts,” it added.
Why are they collecting VAT?
The Nigerian government has been keen on taxing the digital economy in a bid to bolster its revenue generation efforts.
Last week, Nigerian president, Mohammadu Buhari transmitted the 2021 Finance Bill to the National Assembly. When it is passed into law, this bill will empower the Federal Inland Revenue Service (FIRS) to assess and charge companies income tax (CIT) on any digital company with a significant presence in the country, such as Facebook, Twitter, AliExpress, etc.
Humans of the Internet
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This brief was put together while listening to Book Of Revelations by Dax
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