E-commerce and social media have emerged because of the Internet’s development. Business transactions are concluded through it between persons from all over the world who may never meet in person throughout their lives. Flowing from modern trends, a significant number of transactions are completed online on digital platforms and social media. As Nigeria continues to grow and transform in the information and computer technology space, its laws are yet to match the pace of this transition fully. While Nigerians continue to benefit from this development, the profits from online commercial transactions have not been fully captured in Nigeria’s tax bracket.
There is no doubt that fully harnessing the taxation of e-commerce and social media companies would boost the revenue and contribute to the development of Nigeria. This article examines how e-commerce and social media were taxed before the enactment of the Finance Act 2020 and how the Act has brought e-commerce into the Nigerian tax net. This article will also attempt to highlight the experience from other jurisdictions in the taxation of social media and e-commerce, noting the lessons that Nigeria can gain from them. Finally, this article will recommend steps for achieving a fair implementation of the law on the subject.Business Law Review