Using ChatGPT or thinking about upgrading? Then you should know that things are changing. If you are on the paid version of ChatGPT here in Nigeria, you will soon be paying a little more. Do not panic, but do pull up your billing settings.
OpenAI, the company behind the world’s most popular AI chatbot, has just announced that Nigerian users of its paid version, ChatGPT Plus, will soon start paying more. The reason? A new 7.5% Value Added Tax (VAT) will now be applied to all paid OpenAI services in the country. Somehow, VAT has found its way to artificial intelligence.
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Starting 1 November 2025, OpenAI will begin collecting VAT on all its billable products for users based in Nigeria. That means anyone subscribed to ChatGPT Plus (the premium plan that costs around ₦31,500 or $20 a month) will soon pay a bit extra, which amounts to roughly ₦33,862.50 after tax.
The company announced this in emails sent to users earlier in October, informing them of the new billing adjustment and requesting that they update their payment details to include their Tax Identification Number (TIN).
ChatGPT Will Now Cost More for Nigerians
This step aligns with Nigeria’s existing VAT regulations for digital services, a rule that has slowly become the norm for international tech companies operating in the country.
For context, OpenAI is not the first to make this move. Netflix, Google, Apple, Amazon, and Meta, owners of Facebook, WhatsApp, and Instagram, have all started collecting VAT from Nigerian users over the past few years. OpenAI is just the newest member to join the group.
Why AI Is Being Taxed
This might sound strange and have you thinking: why would a government tax a chatbot? But in reality, this is part of a global trend. Many countries are tightening tax laws around digital products and services, especially those offered by foreign companies.
Under Nigeria’s Value Added Tax Act (amended), foreign service providers who sell to Nigerian users are required to collect VAT on behalf of the Federal Inland Revenue Service (FIRS). Section 10 of that Act explicitly mentions “electronic, digital, and remote services.”
So if a product is being used in Nigeria, it is therefore taxable, whether it is Netflix, Apple Music, or ChatGPT. The current VAT rate in Nigeria is 7.5%, and that is the extra charge that will now appear on every paid OpenAI subscription.
According to tax experts, this move is not just about making users pay more. Instead, it is about ensuring a level playing field between local and foreign companies. Nigerian businesses have long been required to remit VAT on sales within the country, and the government is simply extending that same rule to international players who profit from Nigerian users.
How This Affects Nigerian Users
The good news is that free ChatGPT users won’t feel a thing. You can continue using the free version without any changes. But if you are on ChatGPT Plus or plan to upgrade for faster speed, access to GPT-4, and priority usage, you will start seeing a slightly higher monthly bill.
For creators, freelancers, and students who rely on ChatGPT for writing, brainstorming, or even coding, this may feel like yet another item on Nigeria’s long list of “new things to budget for.” It might not seem like much, but with the naira’s instability and the rising cost of living, every extra kobo counts for many Nigerians.
But by charging VAT, OpenAI becomes officially compliant with Nigerian tax laws, which means cleaner invoices, proper receipts, and better transparency for users who might need documentation for business expenses. For registered business owners or freelancers with a TIN, this could even simplify bookkeeping.
The Bigger Picture
The VAT on ChatGPT is not just a financial adjustment; it is a sign of where the digital world is heading. Governments across Africa and beyond are beginning to treat digital services the same way they treat physical goods.
For years, foreign tech companies have made millions, and even billions, in local markets without paying direct taxes. As digital tools become central to everyday life—from content creation to remote work—countries like Nigeria are saying, “It’s time to contribute.”
What Users Can Do
If you are subscribed to ChatGPT Plus, here’s what you should know:
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You do not need to resubscribe; the VAT will be automatically added to your next payment.
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Check your billing email or payment settings for a breakdown of your updated cost.
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If you are registered as a business or freelancer, include your Tax Identification Number (TIN) in your OpenAI billing information to keep your records accurate.
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VAT is not retroactive, so it only applies from the date the change takes effect.
For casual users, it is important to consider whether the paid version is worth the investment. The Plus plan provides smoother access and enhanced performance during peak hours, which can be beneficial. However, if you only use ChatGPT occasionally for quick prompts or casual conversations, the free version may still meet your needs perfectly.
And if you are one of those who swear by AI for work, creativity, or research, you might want to consider updating your billing information to maintain access to this tool that has become our digital best friend.
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