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Instagram & WhatsApp Seller Tax Guide
Social commerce, online selling, and small retail businesses
Most Social Sellers Pay ZERO Tax
If you earn less than ₦800,000/year after expenses, you owe nothing.
Tax-Free Threshold
₦800,000/year
VAT Required
No (if <₦25M)
TIN Required
Yes (NIN = TIN)
Deductions Allowed
Yes - All Expenses
Do Instagram sellers pay tax?
Only if your PROFIT (not sales) exceeds ₦800,000/year. You can deduct all business expenses first.
Example:
Selling ₦2M in products but spending ₦1.5M on inventory and ₦200K on delivery = ₦300K profit = NO TAX.
What You Can Deduct
✓Products/inventory purchased for resale
✓Packaging materials (cartons, bubble wrap)
✓Delivery/logistics costs (GIG, Kwik)
✓Data/Internet for business
✓Paid ads (Instagram, Facebook)
✓Transaction fees (Paystack, bank charges)
✓Phone used for business
Common Mistakes to Avoid
- ✗Not tracking expenses (losing deductions)
- ✗Thinking gross sales = taxable income
- ✗Panicking about bank transaction volume
- ✗Not keeping receipts for purchases